OPEC's (Organization of the Petroleum Exporting Countries) Secretary General Haitham al-Ghais on Thursday rejected the prediction from the IEA (International Energy Agency) that there would be a glut in the oil supply markets.
“Sometimes it's best not to make such assumptions when they are not really based on facts and figures," al-Ghais told CNBC.
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The IEA stated that a lasting peace deal between the US and Iran would lead to a jump in the volume of oil supply and spurr a sizeable surplus in the markets.
The OPEC secretary general dismissed the IEA's claims and said that such public statements can add to further volatility in the market.
“What does the IEA see that OPEC and the rest don't see?” he said.
Al-Ghais said that OPEC only focuses on fundamentals and does not include "ifs and buts" in their forecasts, instead focusing on the relevant numbers. Haitham al-Ghais contended that IEA's projection was not based on concrete facts and data.
“We're not about making a fancy headline that will be catchy. Sometimes it's best not to make such assumptions... when they are not really based on actual facts and figures.”
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The interim deal reached by the United States and Iran to end their war will reopen the Strait of Hormuz and bring the two adversaries back to the negotiating table over Tehran's nuclear program. It will also give Iran an immediate benefit, allowing it to sell its oil freely again, according to details released by both countries.
Besides the new oil revenue for Iran, the two sides are more or less back where they were 3½ months ago — before Israel and the U.S. launched their war, which has left thousands dead across the region, triggered a global energy crisis and shaken the American economy.
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