Calmness in oil market indication of a disconnect with geopolitics: IEA chief
Dismissing talks about crude oil losing its ground as a fuel, International Energy Agency’s Executive Director, Fatih Birol, says that there is already a disparity between the oil prices and the geopolitical situations, therefore, he would be surprised if the prices see any severe spike.
Speaking to BusinessLine from Paris after the launch of IEA’s The World Energy Outlook 2019 he said, “Next few years based on the understanding of the current situation and the growth slow down trend, it is unlikely that oil prices will see an extreme spike.”
“The calmness which we see in the oil market despite the recent challenges in the key producing nations — like sanctions on Iran and Venezuela, attack on an oil facility in Saudi Arabia, and unrest in Iraq –, it is an indication of a disconnect between the price and geopolitics,” he added.
