IEA, OPEC Disagree on Global Oil Supply Adjustments Amid Iran-Israel Conflict
Fatih Birol, Executive Director of the International Energy Agency (IEA), has affirmed the agency’s readiness to intervene, if necessary, to mitigate potential repercussions on global energy supply in the wake of the Israel-Iran conflict.
On Friday, Israel unleashed a series of strikes against oil-abundant Iran, prompting Iranian countermeasures and heightening concerns about disruptions to Middle Eastern oil supplies.
In response to these developments, global oil prices surged by over 7 percent for the first time in more than four months.
In a statement addressing the situation, Birol remarked that the IEA “is actively observing the impact on oil markets stemming from the Israel-Iran scenario.”
“Markets are adequately supplied at present, but we stand prepared to take action should the need arise,” asserted the IEA leader.
“The IEA’s oil security framework boasts over 1.2 billion barrels of emergency reserves, which have proven essential in safeguarding the global economy.”
In contrast to Birol’s perspective, Haitham Al-Ghais, Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), issued a separate statement asserting that there are currently no changes in supply or market dynamics that “justify unwarranted measures.”
According to Al-Ghais, Birol’s remarks “sound unwarranted alarms” and “instill a sense of apprehension in the market.”
“Today’s declaration on social media by the IEA Executive Director concerning prevailing market conditions and the potential deployment of oil emergency reserves, triggers unwarranted alarms and instills apprehension in the market by reiterating the unnecessary prospect of utilizing emergency oil stocks,” stated the OPEC leader.
“Previous assessments, notably in 2022, contributed to heightened market volatility and led to premature releases of stock that ultimately proved unnecessary.”
Al-Ghais emphasized the importance of ensuring that commentary on market conditions is rooted in verified data and rigorous analysis, “particularly during delicate geopolitical circumstances.”
