Recession Due To OPEC+ Oil Output Cut? IEA Says It May Be Tipping Point For Pushing Global Economy Into Recession

With unrelenting inflationary pressures and interest rate hikes, higher oil prices may prove the tipping point for a global economy already on the brink of recession, the International Energy Agency (IEA) said.
Last week OPEC+, led by Saudi Arabia and Russia, announced to cut its oil production targets by 2 million barrels a day,
"The relentless deterioration of the economy and higher prices sparked by an OPEC+ plan to cut supply is slowing world oil demand," the agency said.
The decline in OPEC+ supply will be smaller than the announced 2 million b/d. IEA estimate is for a decrease of around one mb/d in OPEC+ crude oil output from November, with the bulk of the cuts delivered by Saudi Arabia and the UAE.
Oil demand is now expected to contract by 340 kb/d Y/Y in 4Q22, IEA added its monthly oil report.
For 2022, world oil demand growth has been further reduced to 1.9 mb/d from 3.2 mb/d expected before Russia invaded Ukraine.
Global refining activity is responding to the slowdown in demand and lower refinery margins, with 3Q22 runs coming in lower than expected.
The agency's Q4 2022 and 2023 forecasts have been revised down by 340 kb/d and 720 kb/d, respectively, following demand downgrades and OPEC+ production cuts.
Runs are expected to increase by 2.2 mb/d in 2022 and 1.2 mb/d next year.
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