Rising oil prices pose threat to global economy — IEA warns

By Ibiyemi Mathew

The International Energy Agency (IEA), has said that soaring oil prices pose a threat to the growth of the global economy.

With oil prices rising as high as $100, the agency stated that it is surprised at the decision of 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 journalists on the sidelines of the COP27 climate conference in Egypt.

Birol noted that officials from developing countries attending the conference had attributed the high oil prices as a driver of inflation.

The Organization 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 next meeting of the group is slated to hold in Vienna, Australia on the 4th of December.