IEA cuts oil demand outlook, fears Russia supply shock

The International Energy Agency cut its world oil demand forecast for 2022 on Wednesday, warning that sanctions against Russia over its invasion of Ukraine could spark a global supply "shock".

"Faced with what could turn into the biggest supply crisis in decades, global energy markets are at a crossroads," the IEA said in a monthly report.

"While it is still too early to know how events will unfold, the crisis may result in lasting changes to energy markets," said the Paris-based agency, which advises developed countries.

Russia, the world's biggest exporter of oil, has been hit with a slew of international sanctions over the war in Ukraine, which sent oil prices soaring.