In an exclusive interview with CNBC, OPEC's Secretary General Haitham al-Ghais criticized the International Energy Agency's (IEA) prediction of an oil supply glut, which suggested that a resolution to the Middle East conflict could lead to an increase in oil supply by 8 million barrels per day by 2027, while demand would only rise by 2 million barrels per day.
Al-Ghais argued that such forecasts are not grounded in factual data, questioning the IEA's perspective and emphasizing OPEC's focus on actual market fundamentals rather than speculative headlines that could increase market volatility.
His remarks come at a time when investors are closely monitoring the implications of a recent U.S.-Iran agreement aimed at resolving tensions in the region, which includes a $300 billion reconstruction plan for Iran and the potential reopening of the critical Strait of Hormuz for commercial shipping.
Al-Ghais acknowledged the significance of this waterway for global energy markets but cautioned that it is too early to assess the long-term impact of these diplomatic developments