Crude oil and natural gas prices are set to remain elevated as war damage to key refining regions and Russian export limitations tighten global fuel supplies, according to the IEA.
Crude oil prices are facing upward pressure due to significant infrastructure damage in key refining regions caused by the ongoing conflict between the U.S., Israel, and Iran. Furthermore, the inability of Russia to restore full refining capacity as a top fuel exporter exacerbates the global supply constraints, keeping prices elevated.
Supply is constrained due to war-related damage to major refineries and the inability of Russia to operate at full refining capacity.
Brent crude is supported by a structural global fuel shortage resulting from a decade-long trend of European refinery closures and recent war-related damage to refining infrastructure. The IEA's warning regarding sustained price elevation underscores the long-term nature of these supply-side disruptions.
The IEA secretary-general, Fatih Birol, has warned that crude oil prices will remain elevated through next year.
Natural gas prices are expected to remain elevated into the next year due to persistent supply concerns highlighted by the IEA. The broader energy market instability, driven by geopolitical conflicts and reduced refining output, continues to place upward pressure on gas valuations.
According to the IEA secretary-general, natural gas prices are expected to remain elevated throughout the next year.
Global energy markets face sustained upward pressure as war-related damage to refineries and ongoing export constraints in Russia limit fuel output. International Energy Agency head Fatih Birol warns that both crude oil and natural gas prices will remain elevated through next year due to persistent supply-side vulnerabilities.
Prices are supported by a combination of war-related damage to critical refining infrastructure and ongoing export constraints from major producers like Russia.
The IEA secretary-general, Fatih Birol, has warned that supply concerns will keep both crude oil and natural gas prices elevated throughout the next year.