International Energy Agency: "No Oil Supply Crisis Even If Russia Is Sanctioned"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The International Energy Agency (IEA) has forecasted that there will be no global oil supply crisis even if sanctions are imposed on Russia. It is analyzed that increased production from the United States and Middle Eastern countries will offset the impact of sanctions against Russia.

According to AFP on the 12th (local time), the IEA stated in its monthly report, "There is no possibility of a global oil supply crisis due to sanctions against Russia," and explained, "Oil production from the United States and Middle Eastern Organization of the Petroleum Exporting Countries (OPEC) nations is increasing, and the recovery of oil demand until 2023 will be significantly restrained due to rising oil prices and economic growth slowdown."

Earlier, in March, the IEA had warned of a global oil supply shock due to Russia's invasion of Ukraine. At that time, the IEA projected that Russian crude oil and petroleum product production would decrease by more than 3 million barrels per day, but this time it lowered the estimate to 1 million barrels.

The IEA reported, "Russia's crude oil exports in April increased by 620,000 barrels per day to 8.1 million barrels per day, returning to the average level of January to February before the war." Despite sanctions from the United States and the West, the main export destinations of Russian oil have shifted significantly from the U.S. and Europe to India.

According to the IEA, the European Union (EU) remains the largest export destination for Russian oil, but its share in Russian crude oil exports has decreased from 50% to 43%.

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