Russia: IEA net-zero plan may push oil prices up to $200

According to a report from Petroleum Today on June 3, 2021, Russian Deputy Prime Minister Alexander Novak said that the International Energy Agency's (IEA) call for a halt to global oil and gas development may push oil prices up to 200 per barrel.

Novak made the above speech on June 3 in preparations for the upcoming OPEC+ conference in August.

Novak said that the upcoming OPEC+August meeting will discuss and determine the oil production in August or other months.

Novak said: "Seasonal oil demand will rise in the third quarter.

Oil prices soared on Wednesday, reaching their highest level in more than a year because OPEC and its allies decided to stick to a plan to gradually restore supply.

Before Novak commented on the landmark report of the IEA, Prince Abdul Aziz bin Salman, the Minister of Energy of Saudi Arabia, stated that his evaluation of the IEA report was zero stars and bad reviews.

Prince Salman said: "I have to express my opinion.

The IEA's net zero roadmap concludes that if the world is to reduce carbon emissions to net zero in the next 30 years, global oil supply will need to be reduced by more than 8% per year, from 100 million barrels per day before the COVID-19 pandemic.

　　Li Jun compiled from Petroleum Today

　　The original text is as follows:

　　Russia Deputy Prime Minister says IEA's net zero plan could push oil price to $200

　　Russia Deputy Prime Minister Alexander Novak says the International Energy Agency (IEA)'s call for a halt to global oil and gas developments could push oil prices to $200 a barrel.

　　"If the international energy agency's decision to avoid financing new energy ventures is implemented, oil prices may hit $200," Novak said on Thursday as preparations get underway for the upcoming OPEC+ conference set for August.

　　He said the upcoming conference will address and finalize oil output for August or other months while pointing out that this year and next year, oil firms will increase their investments.

　　"Seasonal oil demand will rise in the third quarter," he stated, adding that Russia is satisfied with the present oil price.

　　Novak's remarks on the IEA's landmark report follows comments from Saudi energy minister Prince Abdulaziz bin Salman, who said he give the report Zero stars and two thumbs down and that it is unworthy of consideration.

　　"I would have to express my view that I believe it is a sequel of [the] La La Land movie," Prince Abdulaziz told reporters Tuesday after OPEC+ ministers met to affirm production levels through July.

　　The IEA's roadmap concluded that if the world were to slash carbon emissions to net-zero over the next three decades, global oil supplies would need to shrink more than 8% annually, down to 24 million b/d in 2050, from pre-pandemic levels of just above 100 million b/d.