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IEA: Crude Oil Price Near $110 Puts Energy Security at Risk

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Brent crude oil price continued to climb, almost reaching $110 per barrel, despite warnings from the International Energy Agency that global energy stability is in danger as a result of Russia’s military intervention in Ukraine.

Brent crude oil rose 4.52% today to $109.49, while Nymex crude oil rose 4.51% to $107.92 per barrel.

Fatih Birol, executive director of the International Energy Agency (IEA), stated on Tuesday that the situation in the global energy markets is really serious. When Opec+ meets on March 2 to discuss April production, the market will be watching for a response.

Prior to the attack, the global oil market had already tightened dramatically since economies had recovered strongly from the pandemic, and the disruption of Russian exports might drive crude prices much higher.

According to an IEA statement, the 31 countries that make up the Governing Board of the agency have agreed to release 60 million barrels of oil from their emergency reserves to show to the world’s oil markets that supply will not be disrupted by Russia’s invasion of Ukraine.

As a result of Russia’s terrible and unprovoked invasion of Ukraine’s sovereignty and territorial integrity, ministers voiced solidarity with Ukrainians.

“I am grateful that IEA member countries made available the initial 60 million barrels to provide stability to oil markets,” said Director Birol. “I am also happy that our member countries committed to do their utmost to support Ukraine in terms of fuel supply. At the invitation of the Governing Board, I am also looking forward to welcoming Ukraine Energy Minister German Galushchenko as a special guest to our forthcoming Ministerial Meeting later this month.”

In the global energy market, Russia has a considerable influence. As the world’s third-biggest producer of oil, it is also the world’s largest exporter. Crude oil exports from the country total about 5 million barrels per day, and refined product exports are about 2.85 million barrels per day, which represents about 15% of worldwide refined product exports. 60% of Russia’s oil is exported to Europe, while 20% is exported to China.

Original source material for this article taken from here

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Written by Olivia Woods

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