In a statement published on Monday, the International Energy Agency (IEA) said that OPEC+ decision to cut oil output risks exacerbating a strained market by pushing up oil prices amid inflationary pressures, per Reuters.

Global oil markets were already set to tighten in the second half of 2023 with a potential for substantial supply deficit, the IEA further noted.

Market reaction

This headline doesn't seem to be having a noticeable impact on crude oil prices. As of writing, the barrel of West Texas Intermediate (WTI) was trading at $80.30, rising 6.1% on a daily basis.