OPEC+ oil supply cuts could push world into recession: IEA

The International Energy Agency (IEA), whose main member is the United States, said recently announced cuts in OPEC+ oil supply could push up energy prices, adding fuel to “relentless inflationary pressures” and pushing the world into recession. I warned you there is.

The agency said in its latest oil market report: On sale October 13thThe economy is in deep recession as the central bank raises interest rates to curb sharp inflation, lowering oil demand.

“Continuous economic deterioration and rising prices triggered by the Organization of the Petroleum Exporting Countries (OPEC+) supply cut plan are slowing global oil demand,” the agency said.

IEA sees ‘disruptive market forces’ growing as world struggles to weather ‘worst global energy crisis in history’ as OPEC+ supply cuts drive up prices and market volatility I warned you.

“Rising oil prices could mark a tipping point for a global economy already on the brink of recession as relentless inflationary pressures and rate hikes hit,” the IEA said.

In early October, the OPEC+ alliance of oil producers agreed to cut oil production by 2 million barrels per day, a blow to President Joe Biden’s pleas to the cartels to increase production.

The White House has strongly criticized OPEC+’s cuts, calling the decision a “mistake” and the alliance “allied with Russia.”

Following the OPEC+ meeting where the supply cuts were decided, UAE Energy Minister Subair Al-Mazurui said OPEC’s decision was based on technical considerations and not “political”. said no.

Most recently, the government of Saudi Arabia, a major OPEC+ player, claimed that the Biden administration called for a delay in oil supply cuts until after the US midterm elections.

Saudi Arabia’s Foreign Minister Faisal bin Farhan Al-Saud also accused the US government of trying to “distort” the facts about the kingdom’s position on the conflict between Russia and Ukraine.

White House National Security Advisor Ned Price has denied reports that the Biden administration has asked the cartels to delay decisions to cut oil production until after the midterm elections.

“Certainly I cannot confirm that report. What I can confirm is that we sent a consistent message to the Saudis: energy supply must meet energy demand.” Said At a State Department press conference on Oct.

Saudi Arabia’s Foreign Minister said: statement “All economic analyzes show that a one-month postponement of the OPEC+ decision, as proposed, would have negative economic consequences.”

The Biden administration has been lobbying Saudi Arabia for months to pump more oil, but those efforts have plateaued.

The Epoch Times has reached out to the White House for comment on claims by Saudi officials that they have asked OPEC+ to delay the production cuts until after the midterm elections.

Caden Pearson contributed to this report.

Tom Ozimek


Tom Ozimek has a broad background in journalism, deposit insurance, marketing and communications, and adult education. The best writing advice he’s ever heard comes from Roy his Peter Clark.