Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

IEA's Birol says $100 oil 'real risk' for economy

Published 11/09/2022, 09:52 AM
Updated 11/09/2022, 10:32 AM
© Reuters. FILE PHOTO: Dr. Fatih Birol, Executive Director of the International Energy Agency  in Singapore October 25, 2022. REUTERS/Isabel Kua//File Photo

SHARM EL-SHEIKH, Egypt (Reuters) -The head of the International Energy Agency (IEA) said on Wednesday oil prices "flirting with $100" were a real risk for the global economy, adding he was surprised by the OPEC+ decision to cut output at its Oct. 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 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.

© Reuters. FILE PHOTO: Dr. Fatih Birol, Executive Director of the International Energy Agency  in Singapore October 25, 2022. REUTERS/Isabel Kua//File Photo

The group next meets in Vienna on Dec. 4.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.