BAKU, Azerbaijan, January 20. Global oil and gas prices are likely to face downward pressure over the next three to four years due to rising supplies, International Energy Agency (IEA) Executive Director Fatih Birol said during panel discussions at the World Economic Forum (WEF) in Davos, Trend reports.
“Oil prices are currently 20% lower than last year. A lot of gas is coming to the markets — LNG from the United States, Qatar, Australia, and Canada,” Birol said. “This year, an additional 50 billion cubic meters (bcm) of gas will enter the market, followed by 80 bcm next year. These volumes are pushing gas prices down.”
Birol also highlighted copper, which he said will remain in high demand due to the electricity transition. “Copper prices are up 45% from last year, reflecting rising electricity needs and investments lagging behind demand,” he added.
“Lots of supply is coming, and while it won’t last forever, we may well see downward pressure on oil and gas prices for at least three to four years, driven first by the United States and other suppliers,” Birol said.
On energy security, Birol outlined three key principles for countries: diversification, predictability, and cooperation. “Diversify your clients or sources; ensure predictable policies for energy investments; and choose partners wisely. The countries that make these decisions correctly are the winners,” he said.