Cutting oil output risks global economy, US Treasury secretary says. Janet Yellen’s comments come as figures show business activity declining across most UK regions, The Guardian reports. The world’s biggest oil-producing nations cutting production at a time of soaring energy costs is “unhelpful and unwise” for global economic growth, the US Treasury secretary has warned, amid intense pressure from sky-high inflation.
Ahead of meetings hosted by the International Monetary Fund in Washington this week, Janet Yellen said the move by Opec+ – the oil production cartel led by Saudi Arabia, plus Russia – risked undermining the world economy.
The Biden administration has reacted angrily to last week’s decision to cut daily output by 2m barrels, more than expected, describing it as a geopolitical move. Meanwhile, Yellen said it would risk hurting developing countries more than most.
Her warning comes ahead of sharp downgrades for global growth expected from the International Monetary Fund this week. Attended by more than 190 countries from around the globe, the fund will hold its annual meeting against a backdrop of fragmenting cooperation between nations over the inflation shock exacerbated by situation in Ukraine. Discussions will also focus on the impact of rising interest rates around the world, and the effects of hostilities in Ukraine.
