Fatih Birol, the head of the International Energy Agency, expressed serious concerns about the future of energy markets at a recent press conference held on the sidelines of the "Singapore International Energy Week". He emphasized that he does not expect energy markets to return to the state they were in before the onset of the war against Iran in late February 2027.
Consequences of the War on the Energy Market
Birol noted that the war between the United States and the Israeli regime against Iran has led to serious disruptions in global energy flows and an increase in oil and petroleum product prices. This situation has caused a severe supply shortage in the energy market, whereas it was previously predicted that the market would face an oversupply this year.
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He stated: "Unfortunately, I do not see a reliable path that indicates markets will return to conditions prior to this war next year." Birol also emphasized the need to prioritize energy security as the foremost concern for governments and the business world.
Fluctuations in Oil and Diesel Prices
Furthermore, the price of Brent crude oil reached $117 per barrel in trading on Friday (October 1). This price is considered the highest level in about six months. Although the price of Brent oil decreased slightly on Monday (October 4), it remains about 59% higher than the level before the onset of the war against Iran.
Birol commented on oil prices, saying: "The price is approaching $120 per barrel, and the price of petroleum products is even higher than this." He also expressed concern that the current oil price may not be too high for some countries, such as European countries, but it will have a significant impact on the trade deficits of many countries around the world.
The head of the International Energy Agency particularly expressed concern about the demand for diesel in the winter season. This demand is used for heating in parts of Western countries and typically increases during the winter. He also referred to the problems arising from the war against Iran and added that Qatar and the United Arab Emirates' inability to export gas will put more pressure on gas markets.
Birol also predicted that in the wake of the current crisis, the nuclear energy sector would witness a "strong comeback." According to recent agency studies, there are 90 gigawatts of capacity for nuclear power plants under construction, the highest amount in four decades.
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