IEA chief: Energy markets unlikely to recover to pre-Iran war levels by 2027
IEA head Fatih Birol says global energy markets will not return to pre-Iran war conditions by 2027, citing supply disruptions, high prices, and a nuclear sector revival.
Fatih Birol, head of the International Energy Agency, has warned that energy markets are unlikely to return to pre-Iran war levels by 2027. Addressing the Singapore International Energy Week conference, Birol stated he does not foresee markets returning to their pre-war levels next year, highlighting the need for governments and businesses to prioritize energy security.
Oil prices are nearing $120 per barrel, with oil product prices soaring to even higher levels. While some countries, particularly in Europe, might find the current price manageable, a $120 per barrel price point significantly impacts trade deficits globally. Birol expressed particular concern about the winter demand for certain fuels, especially diesel used for heating in Western nations, as well as the increased demand for refined oil products due to several refineries undergoing maintenance.
He noted that Europe is facing a challenging winter, with countries having reduced imports of Russian gas, and Qatar and the UAE unable to export gas at pre-war levels, putting pressure on gas markets. Birol also expects the nuclear energy sector to experience a significant resurgence due to the ongoing crisis, with the latest IEA survey showing nuclear power plants under construction totaling 90 gigawatts, the highest level in four decades.
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