Energy Forecast Divergence: Impacts on Market Stability

• 24 Feb 2024

Recently, International Energy Forum (IEF) highlighted the uncertainty in energy forecasts are causing market instability, impacting prices, conflicts, and global transitions.

Key Points

• Unprecedented Uncertainty in Energy Forecasts: The International Energy Forum highlights growing divergence in energy forecasts, leading to market instability and investor concerns.
• Impact on Market Stability: Divergence in forecasts affects energy security, market stability, and escalates global conflicts, exacerbating cost-of-living crises.
• Challenges in Energy Transition: Contentious issues include transition pathways, fossil fuel roles, technology access, and green energy commitments, posing risks and uncertainties.
• Wide Variance in Forecasts: Comparison reports reveal significant disparities in long-term energy demand outlooks, highlighting uncertainties in policy, technology, and costs.
• Need for Comprehensive Approach: Meeting energy demands while reducing emissions requires diverse approaches, acknowledging varying country priorities and capabilities.