Fatih Birol, Executive Director of the International Energy Agency (IEA), stated at the Singapore International Energy Week conference that the current crises in the Middle East have intensified pressure on energy markets and that oil, fuel, and natural gas prices are unlikely to return to pre-war levels until 2027. He added, "There does not seem to be a credible path for markets to return to the state before the start of this war."
Challenges of Global Energy Security
Birol further pointed to serious challenges in global energy security, stating that pressure on global energy supply lines is being felt acutely. He also highlighted the importance of trust in energy markets, calling it a scarce commodity today. High oil and fuel prices have particularly negatively impacted Asian economies.
Read more: Middle East oil flow reached 24 million barrels per day
The Future of Oil and Fuel Markets
The Executive Director of the International Energy Agency also referred to the trend of increasing nuclear energy production capacities and the era of electricity, stating, "Oil prices are approaching 120 dollars per barrel, and prices of other products are even higher." He emphasized that current oil prices may not be excessively high or unbearable for some countries, such as European nations, but in many parts of the world, prices near 120 dollars per barrel have a major impact on trade deficits.
According to the International Energy Agency's monthly oil market report for October, the current crisis in diesel and gasoil markets will continue until mid-next year. Analysts at Morgan Stanley have predicted that global fuel markets will remain under pressure at least until mid-next year, as unusual stockpiling that refiners have postponed from this year will take place in the second quarter of 2027.
Read more: Saudi Arabia is storing its crude oil in Singapore · Blocking of the bank accounts of the National Iranian Oil Company and its impact on the industry
