By Adhityo Gilang Bhaskoro, Beni Suryadi and Dr Nuki Agya Utama
Oil and gas security issues are elevating globally, mainly caused by increasing geopolitical tension around the world. With the imposition of economic sanctions affecting some regions, the energy market has become tight, leading to a significant increase in oil and gas prices in 2022.
These price hikes had a significant impact on the global economy, contributing to a slowdown in gross domestic product growth, which dropped by almost half to 3.2 percent in 2022, according to the Organization for Economic Cooperation and Development outlook. Southeast Asia is not an exception, increasing energy prices caused by the crisis contributed to the inflation rate increase in the region from 2 percent in 2021 to 5.1 percent in 2022.
In March and April 2022, the International Energy Agency (IEA) activated coordinated emergency action to release emergency stocks of up to 120 million barrels of oil to the market from its members (the largest release in history) to respond to the energy supply instability around the world. However, despite this intervention, the energy market remains uncertain and is predicted to remain tight well into 2023.
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