The rising energy cost is set to hit a record high of over 13% of global GDP, doubling from 2021’s level of just 6.5%, according to analysis consultancy Thunder Said Energy.

The global GDP is projected to jump to $102.4 trillion in 2022 from $94.9 trillion in 2021. The estimated energy spending is most likely to exceed $13 trillion.

This forecast follows the US Energy Information Agency’s (EIA) increased forecast price of international benchmark Brent crude oil to $116 per barrel for the second quarter of 2022. Gasoline prices are expected to average about $4.10 per gallon (gal) during the second quarter of 2022 and then come down over the following months.

Oil prices gains have extended over a third volatile week of trade after little or no headway in peace talks between Russia and Ukraine.

Meanwhile, the International Energy Agency has urged governments to urgently implement measures to cut global oil consumption within months following supply fears stemming from Russia's invasion of Ukraine.

The IEA also called on the OPEC+ group of oil-producing nations led by Saudi Arabia and Russia to help "relieve the strain" on markets, while warning that the world faced the biggest shock to supply "in decades".

IEA has said that oil markets could lose three million barrels per day (bpd) of Russian crude and refined products from April, exceeding the one million bpd per day demand drop high prices are expected to cause.

IEA said sanctions and buyer reluctance to purchase Russian crude were pushing up oil prices that would adversely impact personal budgets, push inflation, which has already hit multi-decade highs, and undercut economic recovery.

The 10 proposals put forward by the IEA together with the French government, could reduce consumption among advanced economies by 2.7 million barrels a day, while these currently consume between 44 and 45 million barrels a day, according to IEA estimates.

Together the world's advanced economies account for roughly 45% of global oil demand.