According to media reports, Fatih Birol, executive director of the International Energy Agency (IEA), said at an event hosted by the Atlantic Council that oil prices had only reacted to a limited extent to recent developments in global energy markets.
Noting that although oil prices have risen due to the risks associated with geopolitical tensions in the Middle East, Mr. Birol said that prices do not fully reflect the severity of the situation. Agreeing that there is a "gap" between the perception of the market and the actual realities, Mr. Birol stressed that the current price levels do not match the uncertainty faced by the markets.
Limited price reaction despite geopolitical risks
Stressing the need to closely monitor developments in the energy markets, the IEA Executive Director noted that geopolitical risks remain a key factor in terms of supply security.
Stating that uncertainty about the balance of supply and demand in the oil markets remains, Mr. Birol added that the global economic outlook and regional developments continue to play a crucial role in shaping prices.
Emphasis on energy security
Underlining the crucial importance of energy security for the global economy, Mr. Birol warned that potential supply disruptions could have a greater impact on prices. Birol said that under current conditions, daily supply losses have reached 13 million barrels, noting that this exceeds levels seen during past crises.
He added that the limited movement in oil prices does not mean that the risks have disappeared, stressing that developments in the market should be closely monitored.
