International Energy Agency Head Warns Of Global Summer Fuel Shortage Amid Rising Gas Prices

The head of the International Energy Agency warned on Tuesday that the U.S. and Europe could face a gas crisis. He said the outcome could be worse than the oil shocks of the 1970s.

In an interview with the German media outlet Der Spiegel, IEA head Fatih Birol warned that the summer would bring energy shortages, which could lead to a crisis. He warned that "fuel demand will rise."

"We could see shortages — for example in diesel, petrol or kerosene, particularly in Europe," Birol said.

This comes as Russia and Europe continue to spar over gas imports and exports to the region as a result of the Russian invasion of Ukraine. On Tuesday, the European Union announced a partial ban on 90% of Russian exports of oil. That ban would go into effect by the end of the year.

Birol warned, however, that this crisis would be worse than the 1970s because there are three different pressure points for governments and consumers. In the 1970s, during the Iranian Revolution and Yom Kippur War, "it was just about oil."

Now, he warned of an "oil crisis, a gas crisis, and an electricity crisis simultaneously."

According to AAA, Americans spend an average of $4.62 per gallon on gas. The current price is around a 40% increase from the beginning of 2022. In some states, the prices are much higher. Some areas in California see the prices rise above the federal minimum wage, inching close to $8.

Some predict that the national average in the U.S. could rise to $5 by the Fourth of July, as Americans travel and drive more in the summer. Overall, the price of crude oil rose to $118.81 per barrel on Tuesday, riding a two-month high.