The International Energy Agency (IEA) on Tuesday termed the decision of OPEC+ to cut oil production as “risky for the global economy”, saying it may push up already high prices, leading to higher import bills for nations like India.

Global oil markets were already set to tighten in the second half of 2023, with the potential for a substantial supply deficit to emerge, said Fatih Birol, head of the Paris-based energy watchdog.

Talking to reporters after a bilateral meeting with India’s Commerce and Industry Minister Piyush Goyal here, he said, “The cut of the additional production would mean that we have all the reasons to believe that there could be an upward pressure on the prices”.

“At this juncture of time when the global economy is still very fragile and many emerging countries have difficulties with economic performance, I found this decision risky for the global economy,” he noted.

Asked if oil prices could go past $100 per barrel again, he said, “I think we are all the day but $ 85 now, and looking at the second half of this year, I have reasons to believe that it can go even higher at current levels”.

Higher oil prices will not just translate into inflationary pressure on other commodities but will also lead to a larger import bill for nations like India, which are dependent on overseas supplies to meet their requirements.

“India is an energy important country, oil important country, a majority of the oil consumed in India is important, such a move could increase India’s oil import bill and as such a burden on the Indian economy and Indian consumers,” Birol said.

Goyal is here to meet his counterpart and French CEOs to promote trade and investments between the two countries. India is the world’s third-largest oil-importing and consuming nation. It meets 85 per cent of oil needs through imports.