The world has never seen an energy crisis like this before and may not have seen the worst of it yet, IEA chief says

• Darker days are ahead for the global economy, according to IEA chief Fatih Birol.
• "The world has never witnessed such a major energy crisis," he said.

The unprecedented global energy crisis threatening the world economy is likely to get worse in the coming months, according to the head of the International Energy Agency.

Speaking Tuesday at a global energy forum in Sydney, Fatih Birol said: "The world has never witnessed such a major energy crisis in terms of its depth and its complexity."

"We might not have seen the worst of it yet -- this is affecting the entire world," he added.

Soaring energy prices have rattled economies around the globe after Russia's invasion of Ukraine triggered a string of Western sanctions on the country's oil and gas supplies, ultimately leading to severe supply constraints. Demand that had been pent up the pandemic exploded over 2020 and 2021, and more normal activity took place.

In the US, the rising cost of energy has contributed towards high levels of inflation stinging all corners of the economy and specifically hurting Americans at the pump.

Russia meanwhile, has been raking in bumper profits from its oil and gas sales to Asia, as countries like India and China double down on cheap Russian energy. To that effect, Russia stands to earn $285 billion this year from its oil and gas sales.

With the European winter just a few months away, Birol said the region will face great challenges as Russia rattled energy markets even further in recent days. It cut off natural gas supply to parts of Europe to conduct maintenance on the Nord Stream 1 pipeline, but concerns are growing that this shutdown could become permanent.

"This winter in Europe will be very, very difficult," Birol said. "This is a major concern, and this may have serious implications for the global economy," he continued.

It's forced European countries like Germany and Italy to shift to coal as an emergency plan and even considering rationing, in case Russia shuts off the gas tap to the region.