OPEC urges caution amid Mideast tensions

The Organization of the Petroleum Exporting Countries (OPEC) on Friday criticized remarks by the head of the International Energy Agency (IEA), saying his statements risked stoking unnecessary fears in an already volatile oil market.

“There are currently no developments in supply or market dynamics that warrant unnecessary measures,” said Haitan Al Ghais, Secretary General, the oil producers’ group in a statement.

“Today’s statement in social media by the IEA executive director regarding current market conditions and potential use of oil emergency stocks, raises false alarms and projects a sense of market fear through repeating the unnecessary need to potentially use oil emergency stocks,” it added.

Similar assessments made in previous cases—most recently in 2022—contributed to higher market volatility and led to premature stock releases “that ultimately proved unnecessary,” OPEC said.

“It is crucial that commentary on market conditions be grounded in verified data and sound analysis, especially during sensitive geopolitical situations,” it added.

Earlier today, IEA Executive Director Fatih Birol said that the agency was monitoring the impact of the tension between Israel and Iran on the oil market, saying, “Markets are well supplied today but we’re ready to act if needed.”

On his social media account, Birol said, “The IEA oil security system has over 1.2 billion barrels of emergency stocks and has proved vital to safeguarding the world economy.”​​​​​​​

By Handan Kazanci