Market Chatter: IEA Executive Director Calls Out "Artificial Tightness" in Energy Markets
International Energy Agency Executive Director Fatih Birol said the current energy market conditions can be seen as "artificial tightness" and that some countries and major oil and gas suppliers are not taking a helpful position to curb rising prices, according to media reports.
"[In] oil markets today we see close to 6 million barrels per day of spare production capacity lies with the key producers, OPEC+ countries," Birol said Wednesday during a press webinar.
Birol's comments follow announcements from the US and other major economies of a coordinated release of oil from strategic reserves, while OPEC+ refused to heed calls to boost supply.
The IEA acknowledged that rising prices are burdening consumers globally and putting additional pressure on inflation "in a period where economic recovery remains uneven and still faces a number of risks," Birol said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)