News ID: 318215
Published: 0351 GMT November 24, 2021

IEA says not enough oil and gas reaching consumers

IEA says not enough oil and gas reaching consumers

Some countries have not taken a helpful position in terms of oil and gas prices, the head of the International Energy Agency said on Wednesday, saying not enough supply was reaching consumers.

"(A) factor I would like to underline that caused these high prices is the position some of the major oil and gas suppliers, and some of the countries did not take, in our view, a helpful position in this context," Fatih Birol said in an online presentation, Reuters reported.

"Some of the key strains in today's markets may be considered artificial tightness ... because in oil markets today we see close to 6 million barrels per day in spare production capacity lies with the key producers, OPEC+ countries."

The COP26 conference in Glasgow this month was a success, Birol added, saying the Paris-based agency's analysis showed commitments made at the meeting could reduce global temperature rises to 1.8 degrees Celsius above pre-industrial levels.

In an unprecedented move, the United States, the world's biggest oil consumer, has decided to release millions of barrels of oil from its strategic reserve to rein in soaring energy prices. It made the move in tandem with other major oil consumers China, India, Japan, Britain and South Korea.

The US announcement came after Saudi Arabia, Russia and other members of the OPEC+ group of oil exporters rebuffed several calls by US President Joe Biden as well as Beijing and New Delhi to pump more oil.

Oil prices have climbed more than 50% so far this year as demand for the fuel soars amid a swift economic rebound from pandemic lows.

US President Joe Biden on Tuesday authorised the release of 50 million barrels of oil over the coming months.

The UK will release 1.5 million barrels and India will release 5 million barrels. Volumes from other countries have not yet been confirmed.



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