Commodities

The IEA Says it Can Tap ‘Huge’ Oil Reserves If Supply’s Disrupted By Bloomberg


&copy Bloomberg. Fatih Birol

(Bloomberg) — The head of the International Energy Agency said its members have oil reserves available to conduct another round of releases if needed. 

“We still have huge amount of stocks to be released in case we see supply disruptions,” Fatih Birol, the executive director of the Paris-based adviser, said in a group interview at the Singapore International Energy Week Conference. “Currently it is not on the agenda, but it can come anytime.”

The “unfortunate” decision by OPEC+ to trim production at a meeting this month threatens the outlook for prices just as economies around the world are on the brink of recession, Birol said Tuesday. Earlier this year, IEA member countries released fuel after a surge in fuel prices. Prices have dropped around 30% since mid-June. 

Similar story: OPEC+ Reduces Oil-Price Spike Risk and World Recession, IEA Warns 

Separately, the “world is not at all out of the woods” in terms of supply after a recent softening in prices due to unusually mild temperatures in Europe, Birol said. He stated that European countries could have to replenish their stock of liquefied natural gases for the winter of 2023, without Russia gas. An economic rebound in China could also help tighten the market. 

Related story: Global LNG Markets May Be Tighter Next Year, IEA’s Birol Says

Birol stated that the IEA is revising its expectations regarding renewable energy installations as more governments, particularly in Europe, take steps towards accelerating the transition away Russian fuel. He stated that renewable energy capacity will increase by 20% in the coming year with almost 400 gigawatts added. 

©2022 Bloomberg L.P.

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