‘We are facing the biggest energy security threat in history,’ IEA chief tells CNBC

“We are facing the greatest energy security threat in history,” International Energy Agency (IEA) President Fatih Birol told CNBC on Thursday. he said.

“As of today, we’ve lost 13 million barrels of oil per day… and there are major disruptions to vital commodities,” he told Steve Sedgwick on CNBC. LIVE COMBINATION in Singapore.

Birol has previously warned that the Iran war and the ongoing closure of the Strait of Hormuz will lead to “the greatest energy crisis we have ever faced.”

The vital sea passage, through which an average of 20 million barrels of oil and petroleum products were transported every day before the war, is now under a “double blockade” with neither Iran nor the United States allowing ships to enter or exit the strait.

Describing the strait as one of the most important straits in the world, “most critical oil transit pointsThe IEA warned that the shutdown would impact global economic growth, increase inflation and could lead to energy rationing. The agency warned of an imminent jet fuel shortage in Europe, where some countries will face shortages within weeks.

“Europe gets about 75% of its jet fuel from refineries in the Middle East, and that’s actually [down to] zero… Europe is now trying to take this from the USA and Nigeria. If we cannot bring additional imports to Europe from countries now, we will be in a difficult situation,” Birol told CNBC on Thursday.

“First of all, I really hope that the Bosphorus will be opened and refinery exports will start from here, but we may need to take some measures to reduce air travel in Europe,” he said.

The 32-member IEA sought to cushion the impact of the disruption to global energy supplies by agreeing in March to release 400 million barrels of oil from emergency stocks.

Birol said in early April that the IEA would consider releasing a second tranche of reserves, but that such a move would mean more of a delay than a solution to the crisis: “This only helps reduce the pain, it will not be a cure,” he said on the “In Good Company” podcast hosted by Nicolai Tangen, CEO of Norges Bank Investment Management.

“The solution is to open the Strait of Hormuz. We are buying some time, but I do not claim that this will be the solution and that we will have a stock announcement.”

Birol called on governments to increase their resilience with alternative energy sources, including nuclear, and to encourage more efficient technologies such as electric vehicles.

This is breaking news and will be updated shortly.