by Noah Browning
LONDON (Reuters) – The recent production cut announced by OPEC member countries and its allies is likely to exacerbate tensions over forecast oil supply in the second half of the year and could hurt consumers as well as the global economic recovery. , the International Energy Agency (IEA) said on Friday.
“Consumers, faced with rising prices of basic necessities, will now have to arbitrate their budgets even more finely,” writes the IEA in its monthly oil report.
“This bodes ill for economic recovery and growth,” the agency added.
The IEA said it expects global oil supply to fall by 400,000 barrels per day (bpd) by the end of the year with an OPEC+ production cut of 1.4 million bpd and an increase as of March one million bpd of non-cartel production.
According to the IEA, the rise in global oil stocks may have influenced the decision taken by OPEC+ at the start of the month, as stocks in the OECD in January reached their highest level since July 2021, at 2 .83 billion barrels.
(Report Noah Browning; Claude Chendjou, edited by Blandine Hénault)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
