“The relentless deterioration of the economy and higher prices sparked by an OPEC+ plan to cut supply are slowing world oil demand,” the Paris-based agency, which includes the United States and other top consumer countries, said.
The warning from the agency highlights a rift with Saudi Arabia, the world’s top oil exporter and OPEC’s de facto leader.
U.S. President Joe Biden vowed unspecified “consequences” for relations with Saudi Arabia after the OPEC+ move, but Riyadh rejected criticism and said the move was not political and aimed at balancing the market and curbing volatility.
Actual supply losses will likely be around 1 million barrels per day and not the 2 million barrels announced by the OPEC+ bloc, which unites the producer club and allies like Russia, the IEA said.
The EU this month endorsed a plan by the G7 club of wealthy nations to impose a cap on prices for Russian oil exports, a complex set of new global sanctions aimed at depriving Moscow of revenue for its invasion of Ukraine.
Follow us on twitter