What happens if the conflict between the major oil-producing nations is not resolved? The International Energy Agency IEA is concerned.
The International Energy Agency (IEA) has issued an urgent warning of the consequences of the dispute between large oil-producing nations. If the conflict is not resolved, there is a risk of a larger supply deficit with possibly higher fuel prices, the IEA said in Paris on Tuesday.
As a result, the already increased inflation could continue to rise and jeopardize the economic recovery from the Corona crisis, according to the organization’s monthly report.
Actually, the 23 countries of the Opec + group wanted to gradually increase their funding from August onwards in order to meet the increasing demand. However, a dispute between the oil giant Saudi Arabia and the United Arab Emirates prevented an agreement. As things stand at present, nothing will change in terms of the association’s funding for the time being.
The consequences of the dispute are uncertain among experts. Rising crude oil prices are conceivable. Should the dispute escalate further and endanger the cohesion of Opec +, it is also possible that the oil nations no longer adhere to joint funding agreements. In this case, oil prices could also fall significantly as a result of an uncontrolled increase in supply.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
