dubai,
The global economy is driven by crude oil and its associated prices. Globally, crude oil is produced by some countries including the Arab countries, America, and Russia.
In the meantime, the Arab countries that export crude oil have formed an association called OPEC and thereby determine the price of crude oil. These confederations also determine the amount of crude oil produced.
In this case, OPEC countries have announced that they are going to reduce crude oil production. Accordingly, Saudi Arabia, which is the number one producer of crude oil, is going to reduce its daily crude oil production to 5 lakh barrels.
Saudi Arabia has announced that it will produce only 5 lakh barrels of crude oil per day from May until the end of this year.
Similarly, other OPEC countries have also agreed to cut crude oil production.
Accordingly, Iran has agreed to cut daily crude oil production to 211,000 barrels, Kuwait to 128,000 barrels, Oman to 40,000 barrels, and the United Arab Emirates to 1,44,000 barrels.
With this, the daily crude oil production received from OPEC as a whole is going to decrease to 10 lakh 23 thousand barrels. It has been reported that daily crude oil production will remain at the same level from next May till the end of this year.
Russia, which is not a member of the OPEC group, has also announced a cut in crude oil production. Accordingly, Russia has announced that it will reduce daily crude oil production to 5 lakh barrels from May.
OPEC countries including Saudi Arabia have said that they have voluntarily cut production to stabilize the crude oil market.
This announcement is expected to increase crude oil prices in the international market. It is noted that the rise in crude oil prices will lead to rise in petrol and diesel prices.