Diesel prices will push inflation up

Stating that oil prices are around 100 dollars, Birol emphasized that the prices of refined petroleum products are more important than crude oil prices. Pointing especially to the rise in diesel prices, Birol said:

"Diesel prices will put upward pressure on inflation figures all over the world in a very short time."

Stating that diesel prices have increased approximately twofold compared to the pre-war period, Birol said that there are multiple reasons behind this increase. In addition to high crude oil prices, the damage to some refineries in the Middle East during the war and the decrease in diesel exports from the region affected prices. The destruction of some refineries in Russia during the Russia-Ukraine War was also among the factors that increased the pressure on supply.

Regarding the developments in the diesel market, Birol said, "I can say that the world is going through very difficult times regarding diesel." he said.

Stating that one of the important developments that show the extent of the current energy crisis is the changes made by countries, companies and consumers in their energy policies, Birol stated that countries are looking for new energy partners and more reliable suppliers.

Reminding that energy crises have led to important transformations in the past, Birol said that nuclear energy developed rapidly after the oil crises of 1973 and 1979, and energy efficiency increased in the automotive sector.

Stating that countries are turning to domestic energy production as much as possible, Birol stated that moving energy systems towards electrification is one of the common goals.

Emphasizing that strong signals should be given to markets and investors in order to realize climate targets within the scope of COP31, Birol said that countries setting common targets on electrification can support new investments.

Birol said, "What I dream of most is this: If 150-200 countries sign the electrification target at COP31, this will give a signal to investors and companies. That signal will show itself in new investments, and this will be the implementation." he said.

Birol pointed out that energy security, costs and climate change targets came together for the first time and stated that this was a positive development for Antalya.

In his speech at the opening session, Birol also drew attention to China's influence on critical minerals. Stating that China's reduction in rare earth element exports could directly affect the global automotive industry, Birol evaluated this situation with the following words:

"To summarize in one word, if Iran currently has one Hormuz, China has five."

Stating that the automotive industry in Europe and the world could be seriously affected if China halved its rare earth element exports, Birol said, "If China says, 'I have decided. I am halving the rare earth element exports after next month.' "If he says so, the entire automotive industry in Europe and the world will suddenly start to fluctuate." he said.

Emphasizing that critical minerals are not only used in clean energy technologies, Birol added that these resources are also important for the defense industry, automotive, medicine and many other sectors.