According to media reports, Fatih Birol, executive director of the International Energy Agency (IEA), stated at an event organized by the Atlantic Council that oil prices have shown only a limited reaction to recent developments in global energy markets.
Noting that although oil prices have increased due to risks stemming from geopolitical tensions in the Middle East, Mr. Birol stated that the prices do not fully reflect the seriousness of the situation. Agreeing that there is a “disconnection” between market perception and on-the-ground realities, Mr. Birol emphasized that current price levels are not aligned with the uncertainties facing the markets.
Limited price response despite geopolitical risks
Underlining the need to closely monitor developments in energy markets, executive director of IEA noted that geopolitical risks remain a key factor in terms of supply security.
Stating that uncertainties regarding the balance of supply and demand in oil markets persist, Mr. Birol added that the global economic outlook and regional developments continue to play a decisive role in price formation.
Emphasis on energy security
Highlighting the critical importance of energy supply security for the global economy, Mr. Birol warned that potential supply disruptions could have a stronger impact on prices. Birol stated that under current conditions, the daily supply loss has reached 13 million barrels, noting that this exceeds the levels seen in past crises.
He added that the limited movement in oil prices does not mean that risks have disappeared, stressing that market developments should be closely monitored.