LONDON, April 14 Reuters Output cuts announced by OPEC producers risk exacerbating an oil supply deficit expected in the second half of the year and could hurt consumers and global economic recovery, the International Energy Agency IEA said on Friday.

OPEC and the IEA have jousted in recent months over their outlooks for global oil supply and demand.

Consumer countries represented by the IEA have argued that tightening supplies drive up prices and could threaten a recession, while OPEC blames Western monetary policy for market volatility and inflation which undercuts the value of its oil.

Oil market balances were already set to tighten in the second half of 2023, with the potential for a substantial supply deficit to emerge, the IEA said in its monthly oil report.

The latest cuts risk exacerbating those strains, pushing both crude and product prices higher. Consumers currently under siege from inflation will suffer even more from higher prices.

The IEA saw 2023 demand at a record 101.9 million barrels per day, up 2 million barrels per day on last year and on par with its prediction last month.

OPEC called its surprise cut decision a precautionary measure and in a monthly oil report published on Thursday OPEC cited downside risks to summer oil demand from high stock levels and economic challenges.

The IEA said it expected global oil supply to fall by 400,000 bpd by the end of the year citing an expected production increase of 1 million bpd from outside of OPEC…