Energy: was March bad? April should be worse (even if the war in Iran ends now)

“This is the most important energy crisis in history”, reinforces the executive director of the International Energy Agency.

The month of April “it should still be worse than March” for the energy, even if the war in Iran quickly finds a conclusion, warned the executive director of the International Energy Agency (IEA), Fatih Birol.

While some ships managed to deliver their cargo in March that had been “loaded before the start of the crisis (…) Nothing could be carried” this month in the Gulfdeclared Birol at a press conference.

The head of the IEA was speaking following a meeting with the general director of the International Monetary Fund (IMF), Kristalina Georgieva, and the president of the World Bank (WB), Ajay Banga, to coordinate their response to the impact of the war in Iran on the world economy.

“It is about most important energy crisis in history. And it concerns the oil and to natural gas, but also to other essential basic products, such as fertilizers, the products petrochemicals or even the helium”, said the director of the AIE.

Faced with this situation, the three international organizations, which met, want to “share [as suas] assessment capabilities to monitor not only the crisis, but also how countries are responding”, highlighted Kristalina Georgieva.

In this sense, the Fund and the Bank recalled that they were in a position to disburse each, at least, 20 billion dollars to help the most affected countries.

“If the crisis continues, we will redirect other projects, which would allow us to make available, in the next six months, a total of 50 to 60 billion dollars”, assured Ajay Banga, in relation to the BM’s financing capabilities.

Even more so considering that the crisis is expected to persist even after the conflict endsdue to the “damage to infrastructure” oil and gas companies in the Gulf countries, warned Georgieva.

According to the IEA, more than a third of the Gulf countries’ energy infrastructures were seriously damaged during the conflict that began on February 28 by the United States and Israel’s offensive on Iran, to which Tehran responded, in particular, by blocking the Strait of Hormuz.

However, Fatih Birol proved to be optimistic, remembering that more than 80% of the world’s strategic reserves were still available.

This official also called on countries to “do not impose restrictions on exports” and act as “members responsible of the international community.”

The President of the United States, Donald Trump, ordered the Strait of Hormuz, after failed peace negotiations with Iran, in Islamabad, Pakistan and today threatened to “immediately eliminate” any Iranian ship that ignores the blockade of the US armed forces in that strategic sea lane, through which a fifth of oil production passes.

“Warning: If any of these ships comes even remotely close to our blockade, they will be immediately eliminated, using the same neutralization system that we employ against drug traffickers on vessels on the high seas. It’s quick and brutal”, stated the President of the United States in a message published on his social network.

The price of a Brent barrel for delivery in June ended this Monday on the London futures market at an increase of 4.36%, close to one hundred dollars (99.36), due to increasing fears of a worsening of the situation in the Strait of Hormuz.

Climbs

This Monday, the prices of a barrel of Brent oil and natural gas rose again – a consequence of the end of talks between the USA and Iran and the aforementioned blockage of the Strait of Hormuz.

The price of oil for delivery in June it rose 7.5%, once again exceeding 100 dollars and now standing at 102.25 dollars (86.82 euros).

O natural gas rose even more: 8.6%, to 47.66 euros per megawatt-hour.