IEA’s Birol says $100 oil ‘real risk’ for economy

IEA’s Birol says $100 oil ‘real risk’ for economy
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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.

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.

Islam News