Energy markets headed into ‘troubled waters’ amid Iran war, head of IEA says – Reuters

Global energy markets are headed into ‘troubled waters’ ​as the Iran war continues to knock out ‌millions of barrels of oil each day, Fatih Birol, head of the International Energy Agency, said on Thursday at a conference in Toronto.

His ​comments come as Brent oil futures were seesawing between $96 ​and over $102 a barrel on Thursday following mixed reports ⁠of a short-term deal to end the war and possibly ​reopen the Strait of Hormuz, a key trade choke-point that has been ​effectively shut since the conflict started at the end of February.

Birol warned that such volatility will likely continue and that the return of supply ​will be gradual once the war ends.

“In my view, the ​name of the game could well be the volatility, as such, oil ‌security ⁠will still be a key issue,” he said while speaking at the Canada Growth Summit.

He urged Canada, the fourth largest oil producer in the world, to find new destinations for its ​production, adding that ​other countries ⁠seeking new energy trade partners following the Iran war will likely see it as an “obvious” ​choice.

If supply disruptions from the war continue, the ​IEA is ⁠ready to release additional barrels of oil from its strategic reserves, he said. So far they have released 20% of available ⁠oil ​reserves in a bid to mitigate ​rising prices.