The OPEC+ group has imposed deep-set cuts to oil output, seeking to provide “security [and] stability to the energy markets.” Given the existing energy supply constraints, this move should serve as a tailwind for oil prices in the near term.
International Energy Agency (IEA) Executive Director Fatih Birol believes the cuts to be “risky” as the organization still expects a global oil demand growth of close to 2 million bpd this year.
