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Oil Prices Threaten Economy as Demand Growth Slows, IEA Says

  • Growth in consumption in 2022 cut to 1.7 million barrels a day
  • Outlook has rarely been more uncertain as spare capacity falls

Oil prices pose a high risk to the global economic recovery, with signs that fuel costs are starting to “take their toll” on demand growth, the International Energy Agency said.

The Paris-based adviser trimmed forecasts for oil consumption this year and next amid growing fears of a recession, warning that prices threaten stability in emerging economies. Still, the demand weakness is being offset by tightening supply as sanctions hit Russia and OPEC+’s spare capacity dwindles.