The picture shows the oil pump jack in the Kern River oil field in Bakersfield, California.
Jonathan Alcorn | Reuters
The heads of the world’s major energy agencies said that some countries have failed to take a stand that helps to calm the soaring oil and natural gas prices, criticizing the energy market for “artificial tension.”
“[A] What I want to emphasize is that the factors leading to these high prices are the positions of some major oil and gas suppliers. We believe that some countries have not taken a useful position in this regard.” Executive Director Fatih Birol (Fatih Birol) ) The International Energy Agency said in a news webinar on Wednesday.
“In fact, some of the key pressures in today’s market may be considered artificial tension…Because in today’s oil market, we see that nearly 6 million barrels of idle capacity per day are controlled by major producers, OPEC+ countries.”
As he made his comments, energy analysts were evaluating a U.S.-led commitment to release oil from strategic reserves To curb soaring oil prices.
Among such initiatives, President Joe Biden announced the coordinated release of oil by the United States, India, China, Japan, South Korea, and the United Kingdom.
The United States will release 50 million barrels from its strategic oil reserve. Among them, 32 million barrels will be traded in the next few months, and 18 million barrels will be an acceleration of previously authorized sales.
OPEC and non-OPEC oil producing countries, an influential organization, usually called OPEC+, has Repeatedly dismissed In recent months, the United States has called for increased supply and lower prices.
Birol said that the IEA recognizes that the United States is in parallel with other countries’ practices, and that soaring oil prices have put a burden on consumers around the world.
He added: “In a period when the economic recovery is still unbalanced and still faces many risks, this also puts additional pressure on inflation.”
Birol stated that he wanted to make it clear that this was not a collective response from the IEA. He said that the Paris-based energy agency will only take energy inventory measures in the event of major supply disruptions.
Due to short supply, oil prices have risen by more than 50% so far this year, setting a new multi-year high.The momentum behind the price increase even induces some forecasters to predict that the price will return $100 per barrel of oil, Although not everyone agrees with this view.
International benchmark Brent crude oil The London futures trading price on Monday afternoon was US$82.27 per barrel, down about 0.1%, while West Texas Intermediate Crude Oil The futures price was $78.47, almost unchanged during the session.
“The oil market is brewing a new and unknown price war,” Resta Energy senior oil market analyst Louis Dixon said in a research report on Wednesday.
“The world’s largest oil consumer has pledged to release unprecedented and relatively large strategic reserves to the market to quell high oil prices during the recovery of the pandemic.”
Rystad Energy said that if the United States, China, India, Japan, South Korea and the United Kingdom begin to release oil as early as mid-December, it may be enough to exceed crude oil demand next month.
Dixon said: “If the fundamental probation in the first quarter of 22 is imminent, this raises the question of how strategic the timing of Biden, Xi and others is.”
She added: “Since the oil market was the most tense in September and the supply needs to be eased, the release may be too much and too late.”
— CNBC’s Pippa Stevens contributed to this report.