Washington,
Demand for crude oil has increased worldwide. Due to this, the price of crude oil has increased.
Crude oil trade has been affected by fears of a recession in the US and Europe due to international issues including the Ukraine issue.
In this situation, the Organization of Petroleum Exporting Countries (OPEC), led by Saudi Arabia, announced a production cut in order to increase the price of oil.
Accordingly, OPEC announced yesterday that oil production will be reduced by 2 million barrels per day from November. Due to the decision to reduce crude oil production, there is a risk of rising international petrol and diesel prices.
Expressing displeasure over this, the United States has said:-
This is a decision made with a narrow perspective. It is clear that the ‘Organization of the Petroleum Producing and Exporting Countries (OPEC)’ is working with Russia.
The move comes as the United States is deeply disappointed by the move, which comes as the country is facing severe repercussions from Russia’s war on Ukraine.
Low- and middle-income countries will be most affected by OPEC’s decision to cut oil production.
President Biden has issued a new order to the Department of Energy. Accordingly, he has directed an additional 10 million barrels of oil to be withdrawn from the country’s oil storage depots from next month. This will help in keeping fuel prices under control, he said.