OPEC Chief Disputes IEA Forecast of an Oil Surplus Next Year
He called the warning about a sharp increase in shipments a sensational headline
The OPEC chief disagreed with the forecast of a significant oil supply surplus in 2027 / Photo: Todamo / Shutterstock.com
OPEC Secretary-General Haitham al-Ghais called the International Energy Agency’s (IEA) that a resolution of the Iranian crisis could lead to a significant supply glut in the global oil market.
According to the IEA’s estimates, daily production will jump by 8 million barrels in 2027, while demand will increase by only 2 million barrels per day. Al-Gais dismissed this in an interview with CNBC. “Sometimes it’s better not to make such assumptions if they aren’t based on real facts and figures,” he said. “What does the IEA see that OPEC and others don’t?” According to him, OPEC focuses on fundamental indicators rather than scenarios based on numerous assumptions. “Our task is not to come up with a catchy headline. Ultimately, such headlines only increase volatility,” warned the secretary-general of the oil-producing cartel.
The statement was made the day after the U.S. and Iran signed a memorandum of understanding and officially resumed shipping through the Strait of Hormuz, a key route for oil supplies. Under the agreement, Iran committed to ensuring the safe passage of commercial vessels through this corridor for 60 days without charging fees. According to U.S. Vice President J.D. Vance, tankers carrying more than 12 million barrels of oil crossed the strait on the night of June 17–18. However, once the two-month period expires, Tehran intends to discuss the terms for managing the strait with Oman and other Gulf states.
Al-Ghaiss welcomed the deal but urged people not to jump to conclusions, as there are still “many variables” in the situation.
This article was AI-translated and verified by a human editor
