Dubai. The Organization of the Petroleum Exporting Countries (OPEC) and its affiliated countries have increased the crude oil production by about one million barrels per day by a month to the end of July. This step has been taken in the hope of stabilizing the market in view of the situation arising out of the corona virus. The decision was taken at a meeting of video-conferencing on Saturday led by OPEC-affiliated countries and Russia. The move is aimed at reducing surplus production, stopping the falling prices.
At the global level, aviation services are still nearly stagnant due to this epidemic, which has affected demand for crude oil. The total reduction in production accounts for about ten percent of the global supply. Although many countries have now relaxed the lockdown, there is a risk in the crude oil market.
OPEC Chairman and Algerian Petroleum Minister Mohammed Arkab warned that by the middle of this year, global crude oil storage would increase to 1.5 billion barrels. Arkab said that despite the progress made in this direction till date, we cannot relax our efforts yet.
Saudi Arabia's Petroleum Minister Abdulaziz bin Salman also said that everyone has tried to reach where we are today. Salman said that in April, the day US oil futures came down to zero, they were shocked.
This decision of OPEC and its allied countries may increase the price of petrol and diesel in India in the coming days. Ever since these countries have cut production, the price of crude oil has increased. Within the last two months, the price of crude oil has almost doubled. Let us tell you that due to the lockdown, the price of crude oil reached $ 20 in April due to heavy fall in demand and increase in production. At that time, OPEC Plus countries had agreed that in May and June they would produce 9.7 lakh barrels of oil daily. After the production cut, the price started to rise gradually and now it is trading at a three-month high.
This post was published on June 7, 2020 12:56 pm
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