Inflation will increase: Organization of Petroleum Exporting Countries announces big cut in oil production
The Organization of the Petroleum Exporting Countries has announced a big cut in oil production, inflation is going to hit the whole world.
OPEC Plus said yesterday that it would cut oil production by 2 million barrels per day, the biggest cut since the start of the COVID-19 pandemic. The group of major oil producers, which includes Saudi Arabia and Russia, announced production cuts after their first meeting in person since March 2020, CNN reported. This shortfall is equivalent to about 2 percent of global oil demand.
According to the report, the price of Brent crude rose more than 1 percent to about $93 a barrel, making gains ahead of the oil ministers’ gathering this week. US oil rose 1.5 percent to $87.75, the report said.
US President Joe Biden said on Wednesday he was concerned about a major cut in oil production from OPEC Plus.
“I need to see what the details are. I’m worried, it’s unnecessary,” he said.
Production cuts will begin in November, and the Organization of the Petroleum Exporting Countries (OPEC) and its allies will meet again in December.
In a statement, the group said the decision to cut production has been made “in light of the uncertainty surrounding global economic and oil market outlook”.
The whole world is troubled by inflation, it has become difficult for people to live due to the crisis of the market, if now OPEC takes this step in such a situation, then you can understand that it would have been done. PLC/GT