International Energy Agency Says China's Demand Needs To Remain Weak or the World Will Face Major Problems with the Oil Market

International Energy Agency Says China’s Demand Needs To Remain Weak or the World Will Face Major Problems with the Oil Market

Written by Fabio Lucas Carvalho

Published on 23/05/2022 at 16:54

Foto: Pixabay

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International Energy Agency Warns About Global Oil Demand in the Coming Months and Its Consequences

This week, the first World Economic Forum takes place in Davos, Switzerland, with an audience present since 2020. Fatih Birol, Executive Director of the International Energy Agency, spoke about the major challenges in the oil market worldwide for the second half of the year. He highlighted the declining scenario of oil demand in China.

In an interview with CNBC, the agency’s Executive Director stated that he sees the current oil price as very high. He said that the current oil price poses a risk to economic recovery worldwide, especially in emerging countries. This is a significant risk, along with high food prices, which could lead us to a recession, he concluded.

Due to all the problems surrounding the Russian invasion, the price of Brent crude oil is currently around US$ 113.

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Oil Demand in China Plummets

In an effort to curb the spread of Covid-19, the Chinese government has reinstated strict social distancing measures. These actions have stopped the growth of cases in the country, but resulted in a sharp decline in oil demand.

It is believed that the demand for gasoline, diesel, and aviation fuel has dropped by 20% in April. This figure corresponds to a decrease of 1.2 million barrels of oil per day. Fatih Birol, director of the International Energy Agency, also warned that if China recovers its usual oil demand in the coming months, we will have a very difficult summer worldwide.

International Energy Agency Recommends Smart Investments in the Energy Sector

The oil market is one of the most affected by the tension between Ukraine and Russia. Birol urged countries to make the right investments in response to the fossil fuel shortages caused by this conflict.

International Energy Agency Says China’s Demand Needs To Remain Weak or the World Will Face Major Problems with the Oil Market

International Energy Agency Warns About Global Oil Demand in the Coming Months and Its Consequences

Oil Demand in China Plummets

International Energy Agency Recommends Smart Investments in the Energy Sector

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International Energy Agency Says China’s Demand Needs To Remain Weak or the World Will Face Major Problems with the Oil Market

International Energy Agency Warns About Global Oil Demand in the Coming Months and Its Consequences

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Desert sand, previously discarded for being too smooth for concrete, becomes an ecological brick in the United Arab Emirates, dispensing with Portland cement, curing at room temperature, and attempting to transform dunes useless for construction into raw material for a new arid engineering.

He transformed an abandoned plastic water tank into an underground house in the “hobbit hole” style, using only repurposed pallet wood, without heavy machinery or expensive labor.

Toyota launches “family hybrid van” with 7 or 8 seats, 1.8 hybrid engine, fuel consumption of up to 23.8 km/l, and a price equivalent to about R$ 104,000 without taxes, below the Tiggo 8 Pro Plug-in Hybrid sold in Brazil: meet the Noah Hybrid 2026 in Japan.

China transforms desert-devastated area into the world’s largest artificial forest, planting trees for 60 years, blocking sand that reached Beijing, and creating a “green lung” of 92,000 hectares in a region once considered lost.

With 70 tons of rock removed by hand and an 800-year-old abandoned cave, a former businessman transforms a dark shelter into a modern home carved in the heart of the forest.

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