OPEC Secretary General Haitham Al Ghais on Thursday rejected the International Energy Agency’s forecast that global oil markets are heading toward a supply glut.

The IEA said on Wednesday that a lasting resolution of current geopolitical conflicts could unlock additional oil supplies and create a significant surplus in the market next year.

According to the agency, global oil supply is projected to increase by 8 million barrels per day, while demand is expected to grow by only 2 million barrels per day by 2027.

However, in an exclusive interview with CNBC on Thursday, Al Ghais dismissed the forecast, challenging the IEA’s outlook on future market conditions.

Murphy said, “Sometimes it’s best not to make such assumptions when they are not really based on facts and figures.

“What does the IEA see that OPEC and the rest don’t see?” he said. ”[We focus] on fundamentals and not putting many ifs and buts in our forecasts, but rather focusing on actual numbers.

“We’re not about making a fancy headline that will be catchy. Sometimes it’s best not to make such assumptions… when they are not really based on actual facts and figures.

“Ultimately, these headlines only create more volatility.”

Al Ghais’ comments come as investors assess the potential impact of a new agreement between the United States and Iran on global energy markets, particularly the prospects of easing tensions in the Middle East and reopening the strategically important Strait of Hormuz.

The United States and Iran signed a 14-point memorandum of understanding on Wednesday, marking a significant step toward resolving longstanding disputes.

Under the agreement, both countries committed to continued negotiations aimed at reaching a comprehensive deal within the next 60 days.

The memorandum also outlines a $300 billion reconstruction plan for Iran and provides for the removal of all U.S. sanctions imposed on the Islamic Republic.