The prices of oil and natural gas have recently risen significantly, leading to a surge in power prices and causing widespread energy shortages in Asia and Europe. According to the IEA's monthly oil report, record coal and gas prices, along with blackouts, are forcing the power sector and energy-intensive industries to rely on oil to maintain operations. The higher energy prices are also contributing to inflation and could potentially result in reduced industrial activity and a slowdown in economic recovery. As a result, the global oil demand for next year is now expected to reach pre-pandemic levels, with the IEA increasing its demand forecasts for this year and 2022 by 170,000 bpd and 210,000 bpd respectively. An increase in demand during the previous quarter resulted in the largest depletion of oil product stocks in eight years, with storage levels in OECD countries at their lowest since early 2015. The IEA projected that OPEC+ will produce 700,000 bpd less than the anticipated demand for its crude in the fourth quarter of this year, creating a situation where demand exceeds supply until at least the end of 2021. The group's spare production capacity is expected to decrease rapidly, from 9 million bpd in the first quarter of this year to only 4 million bpd in the second quarter of 2022, mainly concentrated in a few Middle Eastern countries. This decline highlights the importance of increasing investment to meet future demand. The report emphasized that a significant increase in investment in clean energy transitions is crucial to avoid potential challenges in global energy markets. The IEA released its annual energy outlook ahead of an upcoming climate conference in Britain, stating that the current economic recovery heavily reliant on fossil fuels is unsustainable. According to a statement made on Wednesday, the world must triple its investment in renewable energy by the end of the decade in order to effectively combat climate change.