OPEC was warned of oil production cuts

Fatih Birol, executive director of the International Energy Agency (IEA), praised the efforts of oil-producing countries to increase oil production and exports to quell high oil prices and warned the Organization of Petroleum Exporting Countries (OPEC) and its allies about the impact of resuming production cuts.

Birol, speaking at a meeting in Bratislava, Slovakia, on Monday, said that in recent weeks, "major oil producers such as Saudi Arabia, Kuwait, the United Arab Emirates, Russia and Iraq have responsibly increased production and pacified the market".

When oil prices recently rose to around $86 a barrel, he warned that the global economy was facing a "dangerous zone", but now oil prices have fallen by $20.

The exemption for Iranian crude oil buyers was "higher than market expectations, so oil prices fell, which was also helped by strong growth in American shale oil".

"The current market is well supplied, but it should not be forgotten that Saudi Arabia's idle capacity is very scarce, so the major oil producers may have some negative impact on the market and further tighten the market by cutting production substantially at present."