Cutting oil output risks global economy, warns US Treasury secretary

Cutting oil output risks global economy, warns US Treasury secretary

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.