Fatih Birol, Executive Director of the International Energy Agency (IEA), said that sanctions imposed on some oil-exporting countries could push crude prices higher, but their impact would be limited given the abundance of spare capacity in the markets.
Birol explained during his participation in the Singapore International Energy Week: "While sanctions could push prices higher, their impact is limited, as prices have stabilized at $60 due to the massive spare capacity."
The IEA Executive Director added: "Despite political tensions in the Middle East, Russia, and Ukraine, and escalating trade wars, oil prices remain stable, as we expected," according to Reuters.
He continued: "Oil and gas markets will enter a critical phase. In the absence of major geopolitical tensions, we are expected to see lower prices."
Birol indicated that approximately 300 billion cubic meters of new liquefied natural gas (LNG) supplies will enter the market between 2026 and 2030, half of which will come from the United States, Canada, Australia, and Qatar.
