IEA Chief Expects Oil Prices to Still Fall Further

Mundy, Director General of the International Energy Agency, said that the international oil market is adequately supplied, but still hopes that oil prices will fall further, and warned that excessive declines may hinder investment in the energy sector. Comprehensive foreign news reports on January 17, Claude Mandil, Director General of the International Energy Agency (International Energy Agency), said that the international oil market is adequately supplied, but still hopes that oil prices will fall further, and warned that excessive declines may hinder investment in the energy sector. .

Mundy said there is still room for oil prices to fall further, perhaps not much.

New York crude oil futures hit a 20-day low on the 16th, hitting a low of $51.21 per barrel.

The sharp drop in oil prices has caused concern among some in the market. If oil prices continue to be weak, it may herald a decline in investment in oil development and downstream refining industries, and may prompt the Organization of Petroleum Exporting Countries (hereinafter referred to as OPEC) to once again call for cuts. quota.

Mundy said he agreed with the view that oil prices should not be too low. If oil prices are too low it will discourage investment. Investment in upstream and downstream capacity is essential.

Mundy declined to specify a price target, but he disagreed with oil prices falling back to $10 or $20 a barrel because the cost of oil exploration and development has risen over the past two years.

On the 17th, Saudi Oil Minister Ali Naimi, OPEC’s largest member, expressed opposition to proposals from other member countries to urgently reduce quotas.

Naimi said that the market changes every day and there is no reason to worry when the market is operating healthily.

Mundy expressed support for Naimi's words, saying that the market supply is good and there is no need to worry about market supply at the moment.

Mundy warned, however, that oil prices could still rise because of the ongoing stalemate over the Iranian nuclear issue, the ongoing war in Iraq, and Russia's apparent willingness to use oil diplomacy.