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1 hour ago 2 min read
The Middle East energy crisis continues to present unpredictable dynamics, with so much resting on a lasting peace. For some, the crisis has marked a turning point, irrespective of its duration, with governments now placing more support behind renewable technologies as part of efforts to boost energy security and reduce fossil fuel dependency.
Fatih Birol, Executive Director at the International Energy Agency, declared “the damage is done” to the global fossil fuel industry, arguing that the current oil crisis has triggered permanent structural changes that will reshape energy markets for decades to come.
That remains to be seen. Fossil fuels continue to power the global economy and renewables are neither at the scale now to replace traditional energy sources, nor likely to be to meet growing energy demands in the short to medium term. Investors continue to see the transition as full of risk and a long term play – though there is no doubt the current crisis has brought discussions more to the fore.
Kerosene supplies are under unprecedented pressures. The spike in crude oil and middle distillate prices directly translates into kerosene cost increases. Prices for jet fuel and diesel, which share refining fractions with kerosene, have more than doubled in some Asian markets.
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