The International Energy Agency states that the oil market still has the capacity to withstand Middle Eastern tensions.
The International Energy Agency announced that the resumption of conflicts in the Middle East has heightened concerns about energy supply security, but the global oil market still has the capacity to withstand this pressure due to several supportive factors.
Fatih Birol, the Executive Director of the Agency, said that the escalation of conflicts and their impact on the Strait of Hormuz and the region’s energy infrastructure have increased concerns about supply security and market outlook. However, according to him, the crude oil market still benefits from supportive factors.
Birol identified the increase in oil exports from several countries and the rerouting of Saudi Arabian and United Arab Emirates oil to global markets through alternative routes to the Strait of Hormuz as key factors that have helped maintain relative market stability.