Russian oil will need to flow back into the crude market to solve an unprecedented world energy crisis, the head of the International Energy Agency said on Tuesday.
A rally in crude oil prices would likely cause inflation to rise and both industrial production and growth to fall. The IEA has warned that could tip the global economy into a recession.
"With unrelenting inflationary pressures and interest rate hikes taking their toll, higher oil prices may prove the tipping point for a global economy already on the brink of recession," the agency said in its most recent monthly oil report. IEA projections show global oil consumption growing by 1.7 million barrels a day in 2023. Russian crude will be needed to bridge the gap between demand and supply, Birol said.
The US and the European Union decided to place limited bans on Russian oil imports after President Vladimir Putin's forces invaded Ukraine in late February.