The International Energy Agency (IEA) has issued a set of 10 recommendations for governments, businesses, and individuals to mitigate the economic impact of oil market disruptions stemming from the ongoing Middle East conflict. These guidelines, released on 20/3, aim to address escalating energy prices.
The recommendations primarily target the road transport sector, which accounts for approximately 45% of global oil demand. The IEA also offered proposals for the aviation and industrial sectors.
The urgent need for these measures stems from the Middle East conflict, which began in late february and has triggered the largest supply disruption in the history of the global oil market. Crucially, oil transport through the Strait of Hormuz, a vital route for 20% of the world's oil tankers, remains blocked.
This blockage has resulted in significant supply shortages, driving crude oil prices above 100 USD per barrel, according to the IEA. Refined products, including diesel, jet fuel, and liquefied petroleum gas (LPG), have also experienced sharp price increases.
Key recommendations include encouraging remote work to conserve fuel from daily commutes. The agency also suggests vehicles maintain slower speeds, at least 10 km per hour below the maximum limit on highways.
The IEA further advises individuals to utilize public transportation, increase carpooling, and minimize air travel when alternatives are available. Additionally, the organization suggested that governments consider daily restrictions on private car use in major urban areas during times of elevated fuel costs.
Reflecting these global concerns, Vietnam's Ministry of Industry and Trade encouraged businesses to implement remote work policies for employees on 13/3.
The IEA emphasizes that restoring oil transport through the Strait of Hormuz is crucial for global energy market stability. While awaiting this, many nations are implementing both supply and demand-side strategies. On 11/3, IEA member countries collectively agreed to release 400 million barrels of oil from their emergency reserves, marking the largest such release in the organization's history.
As of the afternoon of 20/3, world crude oil prices saw a decrease of more than 1% compared to the previous trading session. Brent and WTI crude were trading between 93 and 107 USD per barrel. Despite this recent dip, both oil benchmarks have still risen by approximately 30-40% since the conflict began.
Tu Anh (according to IEA)
