IEA warns of potential economic impact as OPEC+ cuts oil supply.

The International Energy Agency (IEA) has warned that the output cuts announced by OPEC+ producers could exacerbate an oil supply deficit expected in the second half of the year and hurt consumers and global economic recovery. The IEA expects global oil supply to fall by 400,000 barrels per day (bpd) by the end of the year, citing an expected production increase of 1 million bpd from outside of OPEC+ beginning in March versus a 1.4 million bpd decline from the producers bloc. The demand picture will be skewed between lacklustre growth in OECD countries and rebounding demand led by China after the relaxation of its COVID-19 restrictions, the IEA said.