The International Energy Forum called on world leaders Thursday to avoid supply disruptions that would only drive oil prices higher in the wake of Russia’s invasion of Ukraine.
“We urge producer and consumer countries to have a sensitive focus on energy market stability and prevent any disruption to supplies that could lead to further increased prices and heightened volatility,” Joseph McMonigle, secretary general of the International Energy Forum (IEF), said in a statement.
The comments come after Russia’s attack on Ukraine sent Brent crude oil spiking more than 8% to $105 a barrel, a fresh seven-year high, setting off alarm bells in financial markets around the world.
Russia is the No. 2 oil producer in the world and the second-biggest exporter of crude oil.
“Security of supply is going to be even more essential for market stability going forward than in the past due to the heightened uncertainty. Sustained high energy prices are detrimental to consumers and the global economy,” McMonigle said.
The IEF, a group that advises energy importing and exporting nations, said it held a video call with a senior Japanese diplomat on Thursday to discuss the energy prices spike and the outlook for the future.
The IEF said the Japanese official, Ono Keiichi, director general of the economic affairs bureau at the Ministry of Foreign Affairs, was “seriously concerned” by soaring oil prices.
President Joe Biden pledged earlier this week to shield Americans from the pain of high energy prices. Biden said US officials are working with producing and consuming nations to blunt the impact. The remarks hinted at the potential for another coordinated release of emergency oil reserves, akin to the one that had a brief impact on energy prices last fall.
A White House official told CNN Thursday the administration is “pleased” to see public comments aligned with Biden’s message, including from the International Energy Agency and officials in Japan and Australia.
Those comments reflect “our common focus and willingness to address significant market volatility or supply shortages that may result” from the Russia-Ukraine conflict, the White House official said.