Recently, oil and natural gas prices have surged to levels not seen in years, causing power prices to reach all-time highs due to energy shortages in Asia and Europe. The International Energy Agency (IEA) stated that record coal and gas prices, along with blackouts, are leading the power sector and energy-intensive industries to turn to oil to maintain operations. These high energy prices are also contributing to inflation and could potentially slow down economic recovery. Consequently, the IEA now predicts that global oil demand will return to pre-pandemic levels next year, with increased demand forecasts for both this year and 2022. An increase in demand during the last quarter resulted in the largest depletion of oil product stocks in eight years, with storage levels in OECD countries reaching their lowest point since early 2015. The IEA predicted that the OPEC+ group will produce 700,000 bpd less than the estimated demand for its crude in the fourth quarter of this year, causing a shortage in supply until the end of 2021. The report also highlighted a rapid decrease in spare production capacity from 9 million bpd in the first quarter of this year to only 4 million bpd in the second quarter of 2022, mainly in Middle Eastern countries. It emphasized the importance of increasing investment to meet future demands, especially with a focus on clean energy transitions. The IEA warned that without quick action, global energy markets could face challenges ahead. The organization released its annual energy outlook ahead of a key climate conference in Britain, stating that the current economic recovery heavily relies on unsustainable fossil fuels. It was stated on Wednesday that investment in renewable energy must triple by the end of the decade in order to effectively combat climate change.