Diarytimes Media Network, Shimla Published by : Kumud Sharma, Updated June 5, 2023 by Diary Times
Published – 05 June, 2023
If you have not heard the news of increase in oil prices for the last few days, then you may get to hear this news very soon. Because the decrease in the price of oil all over the world has put the oil producing countries in worry. Due to this, they have now decided to reduce the production of oil. It is believed that companies are taking these steps so that the prices of oil can increase. If this happens, then where there is a possibility of increase in inflation, on the other hand interest rates can also increase.
This reduction of Saudi Arabia will start in July, under this, it includes reducing Saudi oil production by one million barrels per day. The remaining OPEC+ member producers agreed to extend their earlier supply cuts through the end of 2024. The cut announced by Saudi Arabia will start from July and under it, it will produce less than 1 million barrels of oil every day. On the other hand, OPEC has agreed with it to reduce oil production by the end of this year.
During a press conference, Saudi Arabia’s Energy Minister Abdulaziz bin Salman expressed his satisfaction with the deal and called it fair while speaking on the transparency of the deal. The drop in oil prices has benefited consumers around the world, allowing American drivers to fill their tanks at a lower cost and provide relief from inflation. Reflecting an uncertain rise in demand in the coming days due to Saudi Arabia implementing production cuts, economic weakness in the US and Europe, as well as China’s emergence as a major player in the OPEC oil cartel given COVID-19 In the US, Saudi Arabia earlier in April agreed to a surprise cut of 1.16 million barrels per day, of which its own share was 500,000 barrels. This was followed by an announcement in October by OPEC+ to reduce production by two million barrels per day, which was criticized by the US President due to high gasoline prices just before the midterm elections.