Oil prices are reaching highs, which seemed unachievable not so long ago. Thus, Brent crude hit its peak of $118 per barrel for the first time since 2014. Although the price pulled back, analysts suppose that it may jump even higher.
A conflict in Europe may cause a further rise in energy prices. That is why the International Energy Agency has to take measures to support its member countries. The agency decided to supply the market with 60 million barrels of oil taken from its strategic reserves. This is an extremely serious collective action. The fact is that the coordinated drawdown is the fourth in the history of the IEA, which was created in 1974. Previously, such collective measures were taken in 2011, 2005, and 1991 to lower oil prices. Although the US and Norway are the only big producers of oil in the IEA, the organization unites the largest consumers of the commodity.
“The situation in energy markets is very serious and demands our full attention. Global energy security is under threat, putting the world economy at risk during a fragile stage of the recovery,” IEA Executive Director Fatih Birol said.
Notably, independent experts doubt that such measures will have a long-lasting effect.
