International Energy Agency Warns of Impending Price Surge in Top Man Energy Sector

The head of the International Energy Agency, Fatih Birol, has warned that energy prices may spike again this winter, putting pressure on gas supplies and pushing up bills for consumers. Birol cited a rapid improvement in the Chinese economy and a harsh winter as factors that could contribute to another spike in gas prices, similar to last year when a surge in wholesale costs fed through to huge consumer bills. He also warned that blackouts could occur this winter as a result of the energy crisis. The situation may force governments to intervene again and subsidize bills. This comes after state support for UK households fell away.

The global squeeze on energy supply that has triggered crippling shortages and sent power and fuel prices surging may get worse, according to a Bloomberg report. Meanwhile, OPEC Secretary General Mohammed Barkindo blamed high prices on the shift to renewable energy sources.