The International Energy Agency cautioned that the “OPEC+” decision has resulted in high oil prices and could cause a worldwide economic recession in its monthly report on the oil market, which was released on Thursday.
The agency wrote in the research that high oil prices “may represent the decisive point of the global economy that is already on the verge of recession” in light of the effects of ongoing inflationary pressures and rising interest rates.
The agency predicts that the “OPEC+” coalition’s actual output will be reduced by around one million barrels per day beginning in November.
With growing concerns about the state of the world economy, the International Energy Agency has lowered its predictions for the increase of the worldwide demand for oil in the current and next years. She claimed to have lowered the volume of expected rise in oil demand for the current year to 1.
9 million barrels per day, which is under 60,000 barrels per day of what was anticipated.
According to the report, the agency lowered its forecast for the growth of oil demand in 2023 by 1. 7 million barrels per day, compared to its earlier forecast of 470 thousand barrels per day.
According to the agency, global oil consumption would total 99.6 million barrels per day in 2018 and 101. 3 million barrels per day in 2023.
In its last meeting, the “OPEC+” group decided to reduce the oil production of the group by two million barrels per day, in light of fears of an economic recession, which will affect global demand for black gold.
Author: RPK.
The International Energy Agency issues a warning regarding the effects of the OPEC Resolution.
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