Warning from IEA on OPEC+ cutbacks

The International Energy Agency (IEA) warned on Friday that the surprise OPEC+ output cuts could aggravate an oil-supply deficit this year and threaten economic recovery. The cut comes on top of the 500,000 barrels-per-day reduction in Russian output and a two-million barrels-per-day reduction in targets in effect since last November. The Saudi Ministry of Energy described the new cuts as a precautionary measure aimed at supporting the stability of the oil market. Before the cuts were announced, oil prices dropped to a 15-month low, but the decision by OPEC+ pushed them higher. Brent crude traded at $86.30 per barrel, while WTI at $82.40.