The Southern Hemisphere Will Suffer Most From Europe’s Energy Crisis – OilPrice.com

by | Oct 29, 2022 | Energy

In no uncertain terms, we are facing the ‘first truly global energy crisis’ according to a new report from the International Energy Agency (IEA). While Europe is the epicenter of the current volatility and scarcity in energy markets, the problem is far from isolated. Continuing to refer to the current circumstances as “Europe’s energy crisis” is not only myopic, but potentially dangerous for the countries that stand to lose the most, almost none of which are on the European continent. According to IEA director Fatih Birol, the biggest victims of this crisis will (unsurprisingly) be emerging and developing countries. In particular, oil-importing nations in Africa, Asia and Latin America will be extremely hard-hit, as fuel prices skyrocket against their relatively weak currencies. Indeed, back in May the International Monetary Fund (IMF) lowered its growth projections for such oil-importing nations, as skyrocketing energy prices add onto a laundry list of pre-existing struggles in the developing and emerging world. “Higher commodity prices add to the challenges stemming from elevated inflation and debt, tightening global financial conditions, uneven vaccination progress, and underlying fragilities and conflict in some countries,” the report stated.Global energy markets were already in flux as economies across the world struggled to recover and reach equilibrium after the first wave of Covid-19 lockdowns. This recovery was never fully realized, however, before Russian forces illegally invaded Ukraine on February 24th of this year. In the ensuing months, the West has slapped sanctions on …

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