The head of the International Energy Agency criticizes the artificial tension in the energy market

Read Time:3 Minute, 12 Second


The picture shows the oil pump jack in the Kern River oil field in Bakersfield, California.

Jonathan Alcorn | Reuters

The heads of the world’s major energy agencies said that some countries have failed to take a stand that helps to calm the soaring oil and natural gas prices, criticizing the energy market for “artificial tension.”

“[A] What I want to emphasize is that the factors leading to these high prices are the positions of some major oil and gas suppliers. We believe that some countries have not taken a useful position in this regard.” Executive Director Fatih Birol (Fatih Birol) ) The International Energy Agency said in a news webinar on Wednesday.

“In fact, some of the key pressures in today’s market may be considered artificial tension…Because in today’s oil market, we see that nearly 6 million barrels of idle capacity per day are controlled by major producers, OPEC+ countries.”

His remarks come as energy analysts are evaluating the effectiveness of the US-led commitment to release oil from strategic reserves to curb fuel price surges.

Among such initiatives, President Joe Biden announced the coordinated release of oil by the United States, India, China, Japan, South Korea, and the United Kingdom.

The United States will release 50 million barrels from its strategic oil reserves. Of these, 32 million barrels will be traded in the next few months, and 18 million barrels will be an acceleration of previously authorized sales.

In recent months, OPEC and non-OPEC oil-producing countries — an influential organization commonly referred to as OPEC+ — have repeatedly rejected US calls for increased supply and lower prices.

Birol said that the IEA recognizes that the United States has made parallel statements with other countries and that the soaring oil prices have put a burden on consumers around the world.

He added: “In a period when the economic recovery is still unbalanced and still faces many risks, this also puts additional pressure on inflation.”

Birol stated that he wanted to make it clear that this was not a collective response from the IEA. He said that the Paris-based energy agency will only take action to mine energy stocks in the event of a major supply disruption.

“A new and unknown price war”

Due to short supply, oil prices have risen by more than 50% so far this year, setting a new multi-year high. The momentum behind the price increase even induces some forecasters to predict that oil prices will return to $100 per barrel, although not everyone agrees with this view.

The international benchmark Brent crude oil futures traded in London on Monday afternoon at US$82.27 per barrel, down about 0.1%, while the price of West Texas Intermediate crude oil futures was US$78.47, almost unchanged during the session.

“The oil market is brewing a new and unknown price war,” Resta Energy senior oil market analyst Louis Dixon said in a research report on Wednesday.

“The world’s largest oil consumer has pledged to release unprecedented and relatively large strategic reserves to the market to quell high oil prices during the recovery of the pandemic.”

Rystad Energy said that if the United States, China, India, Japan, South Korea and the United Kingdom begin to release oil as early as mid-December, it may be enough to exceed crude oil demand next month.

Dixon said: “If the fundamental probation in the first quarter of 22 is imminent, this raises the question of how strategic the timing of Biden, Xi and others is.”

She added: “Since the oil market was the most tense in September and the supply needs to be eased, the release may be too much and too late.”

— CNBC’s Pippa Stevens contributed to this report.


If you want to know more about business please go to https://updatednews24.com/category/business/

Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %
We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners. View more
Cookies settings
Accept
Decline
Privacy & Cookie policy
Privacy & Cookies policy
Cookie name Active

Who we are

Suggested text: Our website address is: https://updatednews24.com.

Comments

Suggested text: When visitors leave comments on the site we collect the data shown in the comments form, and also the visitor’s IP address and browser user agent string to help spam detection. An anonymized string created from your email address (also called a hash) may be provided to the Gravatar service to see if you are using it. The Gravatar service privacy policy is available here: https://automattic.com/privacy/. After approval of your comment, your profile picture is visible to the public in the context of your comment.

Media

Suggested text: If you upload images to the website, you should avoid uploading images with embedded location data (EXIF GPS) included. Visitors to the website can download and extract any location data from images on the website.

Cookies

Suggested text: If you leave a comment on our site you may opt-in to saving your name, email address and website in cookies. These are for your convenience so that you do not have to fill in your details again when you leave another comment. These cookies will last for one year. If you visit our login page, we will set a temporary cookie to determine if your browser accepts cookies. This cookie contains no personal data and is discarded when you close your browser. When you log in, we will also set up several cookies to save your login information and your screen display choices. Login cookies last for two days, and screen options cookies last for a year. If you select "Remember Me", your login will persist for two weeks. If you log out of your account, the login cookies will be removed. If you edit or publish an article, an additional cookie will be saved in your browser. This cookie includes no personal data and simply indicates the post ID of the article you just edited. It expires after 1 day.

Embedded content from other websites

Suggested text: Articles on this site may include embedded content (e.g. videos, images, articles, etc.). Embedded content from other websites behaves in the exact same way as if the visitor has visited the other website. These websites may collect data about you, use cookies, embed additional third-party tracking, and monitor your interaction with that embedded content, including tracking your interaction with the embedded content if you have an account and are logged in to that website.

Who we share your data with

Suggested text: If you request a password reset, your IP address will be included in the reset email.

How long we retain your data

Suggested text: If you leave a comment, the comment and its metadata are retained indefinitely. This is so we can recognize and approve any follow-up comments automatically instead of holding them in a moderation queue. For users that register on our website (if any), we also store the personal information they provide in their user profile. All users can see, edit, or delete their personal information at any time (except they cannot change their username). Website administrators can also see and edit that information.

What rights you have over your data

Suggested text: If you have an account on this site, or have left comments, you can request to receive an exported file of the personal data we hold about you, including any data you have provided to us. You can also request that we erase any personal data we hold about you. This does not include any data we are obliged to keep for administrative, legal, or security purposes.

Where we send your data

Suggested text: Visitor comments may be checked through an automated spam detection service.
Save settings
Cookies settings