Russia’s decision that shook the world market – sharply higher crude oil prices

by time news

Crude oil prices rose sharply in the global market after Russia hinted that it would cut its oil production.

According to this, the price of a barrel of crude oil increased by 2.94 dollars (3.63%) in one day.

The price of one barrel of oil is currently reported at 83.72 dollars.

The price of oil

American WTI After the price of a barrel of oil also increased by 2.07 (2.67%) dollars, the price of a barrel of oil is currently recorded at 79.56 dollars.

In response to Russia’s invasion of Ukraine, the G-7 group of Western nations imposed a $60 cap on Russian crude oil.

And in response, Russia indicated that it would cut its daily crude oil production by 500,000 to 700,000 barrels.

Western countries

Russia's decision that shook the world market - crude oil prices soared |  Crude Oil Prices Have Risen Sharply Global Market

According to reports, Russian President Vladimir Putin may officially release crude oil production next week. It seems that the document regarding this can also be signed.

This has caused consternation among the Western countries, which say that Russia must be blocked anyway.

At one point it was said that no one should buy Russian oil, on the other hand countries like India and China bought oil at concessional prices. Meanwhile, Russia was doing some, if not all, of the selling.

This decision of Russia

Russia's decision that shook the world market - crude oil prices soared |  Crude Oil Prices Have Risen Sharply Global Market

It is expected that Russia may have come to the conclusion that the G7 countries may be affected by the price ceiling, so that it can reduce production.

But while Western countries did not expect Russia to take such a decision, it is expected that not only Western countries, but all international countries may be affected by this decision of Russia.

Even today, Russia is selling to some countries even though it is saying that it should stop the Ukraine problem anyway.

Russia responds

Russia's decision that shook the world market - crude oil prices soared |  Crude Oil Prices Have Risen Sharply Global Market

Due to this, Russia’s economy is also developing to some extent.

Western countries have been clear that they want to use Russia for their needs and not allow it to develop. But in response to all of them, Russia has taken such a decision which has caused a problem in the price of oil.

You may also like

Leave a Comment