‘Plenty of oil’ in market despite Mideast turmoil, says IEA chief

2026-03-06 - 14:04

International Energy Agency executive director Fatih Birol said fears of a global oil crisis stem from logistical disruptions, not from shortage of oil supplies. (AFP pic) BRUSSELS: International Energy Agency (IEA) chief Fatih Birol sought Friday to tamp down fears of a global oil crisis as conflict rages in the Middle East, saying there was “plenty of oil in the market.” The US-Israel war on Iran and Tehran’s retaliatory attacks across the Gulf region have sent crude prices soaring — fanning fears of a fresh spike in inflation that could hit the global economy. Addressing reporters in Brussels, Birol said “logistical disruption” from the war was “creating challenges for many countries” but stressed there was more than enough oil in the global market. Asked whether the IEA was mulling the release of emergency stocks, Birol said “all options are on the table” but that “at this stage” there were no plans for “collective action”. “There is plenty of oil, we have no oil shortage,” he said, after a meeting with European Union chief Ursula von der Leyen and EU commissioners. “There is a huge surplus in the market.” “We are facing a temporary disruption, a logistical disruption,” he said. While Iran has not officially shut off the Strait of Hormuz — through which a fifth of the world’s crude supplies and a substantial amount of gas run — shipping through the critical waterway has all but dried up. US President Donald Trump has pledged to protect ships passing through and promised further action to “reduce pressure on oil”, but prices have remained elevated. The conflict has driven crude prices up by about a fifth since February 27 — the day before the attacks started. The IEA was created to coordinate responses to major disruptions of supply after the 1973 oil crisis. Birol acknowledged the current crisis had led to questions in some quarters about whether Europe should once again look at Russia for energy supplies — something he said would be a mistake. “To look (to) Russia as an alternative option for getting gas will be economically and, in my view, politically wrong,” he told reporters, describing past over-reliance on Moscow as “one of Europe’s historical mistakes”. Large quantities of liquified natural gas (LNG) from the United States, Canada and other countries were expected to hit the market in the next five years, he added. As for meeting growing demand for power and bringing down energy prices, Birol said it was in European countries’ best interest “to make more of their renewable energies — solar, wind and others” and make a “strong comeback” on nuclear power.