Birol: IEA Concerned About Tensions in Hormuz Strait
The International Energy Agency is "significantly" concerned about geopolitical tensions, including in the Strait of Hormuz, but oil markets are currently well supplied and unlikely to see "huge price increases for now," the head of the agency said Friday.
"At present, we have lots of oil in the market. So, in a normal world, we don't expect huge price increases," IEA executive director Fatih Birol told reporters on the sidelines of an industry conference in New Delhi, S&P Global reported.
"A substantial amount of oil is coming from the US, about 1.8 million bpd, plus oil from Iraq, Brazil and Libya," he said.
"Having said that, there are serious political tensions around the world, including the one in the most important Strait of Hormuz, and that is something that concerns the IEA significantly," he said.
"It will be only a big surprise if you see the price jump, but political tensions may impact those dynamics."
Crude oil futures remained more than 1% higher in mid-afternoon trade Asia Friday following reports that an Iranian drone had been shot down by a US navy ship, further escalating tensions between the two countries.
On Friday front-month ICE Brent September futures were up 95 cents per barrel (1.53%) from Thursday's settle at $62.88 per barrel, while the front-month NYMEX August light sweet crude futures contract was 58 cents per barrel (1.05%) higher at $55.88 per barrel.
"Today, about 18 million barrels of oil on a daily basis flows through this choke point coming from Saudi Arabia, Emirates and other countries to China, Japan, India and other Asian customers," he added.
source: Financial Tribune
Top News
Five last month
Two last year
US Energy Dept finalizes $2.26bn loan for Lithium Americas’ Nevada mine
Abandoned copper mines embraced as fast track to boost output
Glencore posts lower metals output for first nine months, reiterates outlook
Mercuria eyes equity in African assets, new metals boss says
Solidcore to buy 55% stake in Kazakhstan’s Syrymbet tin deposit for $82.5m
Traders see gold as a surefire bet as coin-toss election looms
Gold price surge adds glitter to tarnished miners
Environmentalists sue over US approval of ioneer’s Nevada lithium mine
Gold price shows little reaction to jobs data
St Barbara raises $73m to fast-track Simberi sulphide production
Copper price sees biggest drop since May as Trump’s win boosts dollar
Sibanye agrees wage deal for its gold operations, union says
China’s industry ministry plans to step up lithium, cobalt, nickel exploration
Liberty Gold advances Black Pine project permitting
China zinc smelter group sets processing fees for Q1 2025
Brazil prepares to remove illegal Amazon gold miners from Munduruku land
Anglo American sells Australian coal JV stake for $1.1 billion
Solidcore to buy 55% stake in Kazakhstan’s Syrymbet tin deposit for $82.5m
Ecuador to reopen mining register for first time in over six years
St Barbara raises $73m to fast-track Simberi sulphide production
Copper price sees biggest drop since May as Trump’s win boosts dollar
Sibanye agrees wage deal for its gold operations, union says
China’s industry ministry plans to step up lithium, cobalt, nickel exploration
China zinc smelter group sets processing fees for Q1 2025
Brazil prepares to remove illegal Amazon gold miners from Munduruku land
Anglo American sells Australian coal JV stake for $1.1 billion
Solidcore to buy 55% stake in Kazakhstan’s Syrymbet tin deposit for $82.5m
Ecuador to reopen mining register for first time in over six years