Opec and IEA diverge on world’s capacity cushion
As trade tensions and disruptions ripple through the market, Opec and the IEA disagree on the risks to supply
Global energy bodies parted ways this week on the expected impact of oil capacity risks caused by sanctions and production outages in Venezuela, Libya and elsewhere. While the International Energy Agency's monthly report projected that capacity could be "stretched to the limit ", Opec said rising supply, particularly from its rivals, will easily meet slowing global demand growth. The prospect of tightened markets saw WTI prices spike as high as $74.77 a barrel in recent weeks, frustrating Opec's efforts to moderate prices, announced following the group's Vienna meeting at the end of June. But this week global trade tensions, a revival of Libyan production and US assurances over Iran sancti
Also in this section
1 April 2026
Golden Pass’s startup offers QatarEnergy a timely boost but may also force a difficult choice between honouring disrupted contracts and capitalising on soaring spot LNG prices
1 April 2026
It is not a case of if or when, but the length and magnitude of economic damage from elevated oil prices
1 April 2026
The US-Iran conflict demonstrates the need for diversification in several senses of the word. It also exposes the limits of Washington applying pressure on major oil and gas producers it considers geopolitical adversaries
31 March 2026
Disappointing results in its bidding round are a reality check for Libya, and global exploration generally
