IEA Statement - OPEC decision to cut output by 1.5 mb/d

The IEA has noted the OPEC decision to cut its target output level by 1.5 mb/d from 1 November. We are concerned that reductions in supply may ultimately exacerbate what remains a fragile global economic situation. While the trend in global oil demand has been weakening, there remain considerable uncertainties over upcoming winter demand levels and potential non-OPEC supply outages. Non-OECD demand remains robust and importer country requirements also need to be considered. We note that OECD stocks have again moved below higher mid-year levels, just when the onset of winter requires healthier stock cover. We urge all suppliers to keep a close eye on the impact of their actions on the global economy.