International Energy Agency: "Saudi Arabia and Russia cut oil production will cause significant supply shortages"

September 14, 2023 (Euronews) The International Energy Agency said on Wednesday that oil cuts implemented by OPEC+ allies Saudi Arabia and Russia will cause "significant" shortages in global supply until the end of the year.

The announcement in the agency's monthly market report came a day after oil prices rose sharply after updated data published by OPEC showed the gap between global supply and demand would be the widest since 2007.

In an effort to support prices, Saudi Arabia and Russia announced earlier this month that they would voluntarily extend output cuts until the end of the year. "From September, OPEC+ production cuts led by Saudi Arabia will lead to significant supply shortages during the fourth quarter," the Paris-based agency said.

"Oil inventories will be at uncomfortably low levels, increasing the risk of another wave of volatility that will not be in the interest of producers or consumers, given the fragile economic reality."