The International Energy Agency (IEA) released a 10-point plant to reduce oil use by 2.7 million barrels per day over the course of the next four months in a bid to relieve pressures on global oil markets due to the Russian invasion of Ukraine.
The plan follows on the IEA’s earlier estimate that 2.5 million barrels per day of Russian oil could be shut-in starting from April, when pre-invasion delivery contracts run out.
The plan includes measures to reduce speed limits by at least 10km per hour, implement car-free Sunday’s in large cities, adopt trains use instead of planes, reduce prices of public transport and increase home working.
“With the potential loss of large amounts of Russian supplies looming, there is a real risk that markets tighten further and oil prices escalate significantly in the coming months as the world enters the peak demand season of July and August,” notes the IEA.
Prices have been highly volatile since the Ukraine crisis began, swinging between $95 per barrel and $145 per barrel.