Saudi Led Fuel Cuts Will Cause More Inflation, Says The International Energy Agency

Global economists are shocked by the cartel's decision to cut production amid forecasts of consistently growing oil demand.

In the beginning of April, OPEC+ unexpectedly  announced a production cut of 1,200 barrels per day. The cartel plans to decrease its oil output beginning in May 2023 until the end of the year. The move was primarily driven and, possibly brokered, by the “plus” member of the cartel - the Russian Federation. A couple of weeks after the official announcement, the International Energy Agency is reporting that the decrease in output is expected to cause significant deficits beginning in the second quarter of 2023.