This story was originally published by The Guardian and is reproduced here as part of the Climate Desk collaboration.
The worldwide energy crisis has reignited demand for oil, posing a threat to the world’s climate ambitions and the global economic recovery from COVID-19, according to the International Energy Agency.
The global energy watchdog said the shortage of gas and coal across the biggest economies, which has caused energy markets to rocket, could trigger a faster-than-expected rebound in the oil market and drive demand to above pre-pandemic levels as soon as next year.
The Paris-based agency said this would greatly increase costs for energy-hungry industries which, along with power outages, could lead to lower industrial activity and a slowdown in the world’s economic recovery from the pandemic.
“Record coal and gas prices as well as rolling blackouts are prompting the power sector and energy-intensive industries to turn to oil to keep the lights on and operations humming,” the IEA said.
In China, the producer price index, or PPI, which reflects the prices factories charge wholesalers for their products, rose by 10.7 per... Read more