OPEC+ impasse risks price war as demand surges for oil, says IEA
LONDON (Reuters) – Stalled talks by top oil producers over releasing more supply could deteriorate into a price war just as COVID-19 vaccines are sending demand for oil surging, the International Energy Agency (IEA) said on Tuesday.
The Paris-based agency’s concern over scarce oil supply comes less than two months after it issued a landmark report warning that investors should not fund new oil, gas or coal projects if the world wants to reach net zero emissions by mid-century.
“The possibility of a market share battle, even if remote, is hanging over markets, as is the potential for high fuel prices to stoke inflation and damage a fragile economic recovery,” the IEA said.
