IMF expects negative consequences of energy supply disruptions to persist

Business & Economy April 09, 19:09

This threatens to shut down some oil refineries, Kristalina Georgieva, Managing Director of the International Monetary Fund, said

WASHINGTON, April 9. /TASS/. The consequences of energy supply disruptions due to the US and Israeli military operation against Iran will persist for the foreseeable future, said Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF).

Georgieva noted that "the now-paused war in the Middle East" has resulted in significant disruptions in energy supplies, "large, with the world’s daily oil flow cut by some 13%, and its LNG flow by some 20%"

Moreover, the consequences of the shock are asymmetrical, "with its impact depending on proximity to the conflict, whether you are an energy exporter or importer, and your policy space."

"The supply interruptions have had and will for some time continue to have ripple effects," Georgieva emphasized during a speech ahead of the spring meeting of the IMF and World Bank governing bodies, which will take place next week.

This, she said, threatens to shut down some oil refineries, lead to shortages of refined petroleum products, worsen food security, and disrupt supply chains.

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