The International Energy Agency warned that a decision by Opec, the Saudi Arabia-led producer cartel, to reduce oil production could lead to a global recession.
Opec last Wednesday defied the pleas of US President Joe Biden. They slashed oil production in the United States by 2 million barrels per day, the largest reduction since April 2020’s pandemic.
According to the IEA, the move that has driven up wholesale oil prices could prove fatal for ailing countries around the world.
#SaudiArabia-led producer cartel Opec+ to cut #oil output could push the global economy into recession, the International Energy Agency has warned. The IEA said the move, which has driven up wholesale oil prices, could be the final straw for ailing economies around the globe. https://t.co/n28G2Ua6bj
— Share_Talk ™ (@Share_Talk) October 13, 2022
It wrote in its monthly report: “The persistent deterioration and higher prices that have been triggered by the Opec+ plan for reducing supply are slowing down world oil demand.”
“Higher oil prices could be the tipping point in a global economy that is already at the edge of recession due to unrelenting inflationary pressures, and interest rate rises.”
This warning highlights the growing discord between the West, Saudi Arabia and Russia. Russia has been accused of supporting the West to keep oil supplies afloat and support up prices.
