Gas shortages are forcing power plants to switch to oil and increasing demand

Rising natural gas and coal prices are putting power generation companies and manufacturers under pressure to switch to oil, a trend that could increase global demand by half a million barrels a day, the International Energy Agency said on Thursday.

In its monthly market report, the IEA raised its forecasts for global oil demand for this year and next by 170,000 and 210,000 barrels a day, respectively, but added that the cumulative impact of the energy crisis could be as high as 500,000 barrels per day from September to September first quarter of next year.

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