There have been worries from the Organisation of the Petroleum Exporting Countries (OPEC) that the drive to promote biofuels as an alternative energy source risked driving oil prices “through the roof”.
OPEC is considering cutting its investment in new oil production in the face of a potential shift to biofuels. Both the US and European Union are seeking to cut oil imports.
But IEA head Claude Mandil told the Financial Times that OPEC had nothing to fear.
“Even in the most optimistic scenarios, the contribution from biofuels would be very small,” he said.