International Energy Agency Warns of Impact of European Methane Rules on Oil Supplies

Brussels, July 14 (KUNA) -- The International Energy Agency (IEA) warned on Tuesday that new European Union rules aimed at reducing methane emissions could curtail the supply of oil available to member states and increase refining costs, urging clarification of the implementation mechanism. In its monthly oil market report, the agency stated that applying the rules from January 2027 would narrow the range of crude oil types that European refineries can legally import by “more than 50 percent.” It explained that approximately 22.5 million barrels per day of global oil production is expected to comply with the United Nations standard for monitoring methane emissions by 2027, but not all of these volumes will be available to the European market, which imported around 9.3 million barrels per day of oil in 2025. The agency added that limiting options for European refineries could lead to higher production costs or reliance on less suitable crude oil types, warning that this could weaken energy security in the European Union. The IEA called on the European Commission to clarify how the new rules will be implemented, noting that continued uncertainty could further restrict the oil supplies available to member states. (End) A.R.N. / M.A.H.A.