Oil Prices At $100 Per Barrel, Threat To Global Economy – IEA

The International Energy Agency(IEA) has, on Wednesday, warned that oil prices climbing at $100 pose a real risk for the global economy, as it expressed surprise by the OPEC+ decision to cut output at its October 5 meeting.

IEA executive director, Fatih Birol said, in the past, oil producing nations had taken decisions that calmed markets.

“This decision may put further upward pressure on inflation and weaken the global economy,” Birol told Reuters on the sidelines of the COP27 climate conference in Egypt.

The Organisation of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, decided to lower targeted production by 2 million barrels per day (bpd) in October, despite opposition to cuts from the United States and others.

The group next meets in Vienna on December 4.

Birol said that officials from developing countries attending the climate conference had pointed to high oil prices as a driver of inflation.