The International Energy Agency warned, in its monthly report, that the “OPEC +” decision to cut production led to a rise in oil prices, and might push the global economy into recession.
The agency stated in the report: “In light of the repercussions of continuing inflationary pressures and raising interest rates, the rise in oil prices may represent the turning point for a global economy that is already on the brink of recession.“.
The agency believes that the real reduction in the production of the “OPEC +” alliance will be about one million barrels per day, starting from next November.
And the International Energy Agency has lowered its forecast for the growth of global demand for oil during the current and next years, as fears of a global economic recession escalate. It said that it reduced the volume of oil demand growth for the current year to 1.9 million barrels per day, 60 thousand barrels per day less than previous expectations.
The report stated that the agency reduced its forecast for oil demand growth during 2023 by 1.7 million barrels per day, less than 470 thousand barrels per day from its previous forecast..
The agency expects total oil demand to reach 99.6 million barrels per day this year, and 101.3 million barrels per day in 2023..
And the “OPEC +” group decided, at its last meeting, to reduce the group’s oil production by two million barrels per day, in light of fears of an economic recession, which would affect global demand for black gold.
(Russia Today)