IEA condemns ‘Russian roulette in oil markets’

Global oil market turmoil caused by a supply war between Saudi Arabia and Russia threatens political stability—just as the world should be coming together to combat Covid-19. So says the IEA, as it launches forecasts for annual growth to 2025.

The IEA today condemned apparent attempts to kill off US shale oil production, warning that collapsing oil prices threaten the stability of some oil-producing countries. The agency was responding to Saudi Arabia’s decision to raise its production following Russia’s refusal to agree to output cuts at last week’s Opec+ talks.  The impact of the turmoil is heightened by the underlying Covid-19 virus outbreak, which is constricting travel and broader economic activity. It is threatening an “unprecedented overhang” of 3.5mn bl/d of oil supply in the first quarter of 2020, warned executive director Fatih Birol.  “At a time of such uncertainty and potential vulnerability for the world economy, play