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IEA chief sees little chance of oil market normalizing next year
The head of the IEA said oil markets are unlikely to return to normal next year, with prices above $100 a barrel compared with under $70 before the war and diesel at record highs. Goldman Sachs said tanker freight rates have risen to $20 a barrel from $3, and Morgan Stanley expects fuel markets to stay tight through mid-2027. Middle East Eye reported Gulf oil exports exceed pre-war levels via ship-to-ship transfers and Red Sea routes.
Why it matters
Prolonged high fuel and shipping costs feed inflation in import-dependent economies such as Zimbabwe, Japan and Europe.
Background
The war involving Iran damaged Gulf refineries and disrupted shipping through Hormuz and Bab al-Mandab. The IEA advises major consuming nations on energy security.
The story so far
- Brent crude touches $110 as Hormuz attacks escalate
- Brent touches near $110 before easing as Middle East supply recovers
- Oil prices ease on hopes of Middle East diplomacy as freight costs soar
- IEA chief sees little chance of oil market normalizing next year
Sources
- The Hindu ↗Oct 20, 10:24 PM ET
- OilPrice ↗Oct 21, 5:30 AM ET
- Middle East Eye ↗Oct 21, 3:02 PM ET
This summary was written automatically from the reporting linked above; follow the sources for the full story. How One Turn works.