OPEC+ Cuts Risk Oil-Price Spike and World Recession, IEA Warns

  • Demand growth forecast for 2023 cut by 470,000 barrels a day
  • Higher prices after OPEC+ cut may be economic ‘tipping point’
WATCH: The IEA warns that the OPEC+ decision to cut production could push oil to levels that would tip the global economy into recession.Source: Bloomberg
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The OPEC+ decision to sharply curtail oil production threatens to push prices to levels that tip the global economy into recession, the International Energy Agency warned.

“The massive cut in OPEC+ oil supply increases energy security risks worldwide,” with “resulting higher price levels exacerbating market volatility,” the IEA said in its monthly report. “Oil prices may prove the tipping point for a global economy already on the brink of recession.”