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Originally Posted by redneck
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Why did they choose China 🇨🇳...???
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Credit to your source, at least they linked the source document but they took it for granted you wouldn't actually read it.
The actual statement in the press release:
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"If fully carried out in advanced economies, the measures recommended by the IEA’s new 10-Point Plan to Cut Oil Use would lower oil demand by 2.7 million barrels a day within four months – equivalent to the oil demand of all the cars in China. This would significantly reduce potential strains at a time when a large amount of Russian supplies may no longer reach the market and the peak demand season of July and August is approaching. The measures would have an even greater effect if adopted in part or in full in emerging economies as well."
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Originally Posted by redneck
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At the end of the article they added this almost as a afterthought...
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"The International Energy Agency has also acknowledged that an increase in oil supply and a suspension of gas taxes will help lower prices at the pump.
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Not an afterthought. Just not something that can increase supply in a couple of months. From the report:
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Such measures, however, do not address the broader strains affecting the market. One way to do so is to increase supply. Spare capacity is available in some major producers outside Russia, but the disappointing outcome of recent OPEC+ discussions suggests limited willingness to provide immediate relief to the market. IEA member countries, as part of their collective response, unanimously agreed this month to draw on emergency stocks for an initial release of 62.7 million barrels, the largest stock release in IEA history. New oil production projects could increase liquidity in the market in the medium term but would not be able to ease the current strains. The oil industry’s stocks typically help balance the market when demand outweighs supply. But even before Russia’s invasion, the industry’s oil inventories were depleting rapidly. At the end of January, inventories in advanced economies were 335 million barrels below their five-year average and at eight-year lows.
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As always the best material is the actual source material. It is here and not a long read.
Press Release:
https://www.iea.org/news/emergency-m...-supply-crunch
Actual Report:
https://www.iea.org/reports/a-10-poi...to-cut-oil-use