A plan to slash oil production in November could send prices soaring, exacerbate already entrenched inflation in the United States and Europe, and push the global economy into a recession, the International Energy Agency (IEA) said Thursday.

IEA researchers pointed to a recent OPEC-plus decision to cut oil output by 2 million b/d next month. The researchers said the move could drive supply/demand out of balance and bolster prices as inflationary headwinds threaten to cripple consumer spending and, by extension, major economies.

The U.S. Department of Labor on Thursday said the consumer price index, a key measure of inflation, increased 8.2% in September from the same month a year earlier. That was down from a 2022 peak of 9.1% in June but still four times the level that Federal...