IEF Calls for More Oil Data Transparency from Non-OECD Nations To Enhance Market Stability

RIYADH, Saudi Arabia – The Secretary General of the International Energy Forum called for greater oil data transparency from non-OECD nations to enhance the stability of global oil markets, at a meeting of the IEF Executive Board.

The IEF plays a crucial role in promoting global energy data transparency through its producer-consumer dialogue and the coordination of the world's largest free database of global oil and gas data, the Joint Organizations Data Initiative (JODI). The proportion of the world market covered by this data has fallen over the last 20 years as demand has steadily grown in countries outside the Organization for Economic Cooperation and Development (OECD), according to a new IEF report.

"Stronger and broad high-level political support is urgently needed for greater energy data transparency, especially in non-OECD nations, to stabilize markets and allow producers and consumers to stay ahead of the geoeconomic shifts unfolding in a new and uncertain risk environment," said IEF Secretary General Joseph McMonigle.

Mr McMonigle made the comments at the IEF Executive Board meeting held virtually in December, handing over to his successor, IEF Secretary General-elect Jassim Alshirawi, who takes office on January 1, 2025.

Countries that contribute their oil supply, demand and inventory data to JODI are predominantly from the OECD, but demand in non-OECD nations now outpaces OECD demand, creating an information gap in fast-growing emerging markets in Asia, Africa and South America.

Oil inventories are important for energy security, market stability and risk management especially amidst crisis, geoeconomic shifts and transitions. The IEF was founded in 1991 to strengthen energy security. Today, it is the largest organization of energy ministers in the world, with 72 member countries including producers and consumers.

More complete and granular data enables consumers, producers and traders to better inform price discovery in global markets, support risk management operations and so enhance stability, from which all energy market stakeholders benefit.

Oil inventory data reporting in OECD countries already sets an international standard for official oil inventory data reporting. Shifts in demand growth from the OECD to the non-OECD region, make equivalent reporting standards important to maintain a complete overview of monthly changes in oil market fundamentals. This official reporting sets a benchmark for other non-governmental commercial data providers and alternative methods that remain subject to challenge.

Overcoming oil inventory, and other key energy market transparency data gaps is best addressed with stronger and broader engagement by IEF governments and enhanced collaboration among partner organizations of the JODI.

"There is no other platform than the IEF for producers and consumers to collaborate on improving energy market data transparency and we call on all countries to strengthen their reporting to the JODI network and ensure it continues to be the global benchmark for official, readily available, free and complete energy market data," Mr McMonigle said.

Aspirations to transition away from fossil fuels makes official oil inventory data even more relevant to policymakers, investors and risk managers to maintain investment at adequate levels and protect consumers from price shocks caused by information gaps or inadequate inventory cover.