OPEC Plus’s decision to cut crude oil production and change rules will be applicable from November.
OPEC Plus, the organization of crude oil producing countries, has decided to cut production by 2 million barrels per day.
Despite US pressure, OPEC Plus has decided to cut its production by the biggest since 2020. The move is seen as another blow to the already struggling global economy.
For the first time since the Corona epidemic, a meeting of energy ministers of OPEC countries held at the Vienna headquarters was decided to cut production from November.
OPEC Plus’s decision to cut crude oil production: Crude oil prices are down.
In the last three months, the price of crude oil has come down from $ 120 a barrel to $ 90 a barrel. OPEC Plus made a symbolic cut in production last month.
Although there were major cuts in production during the pandemic, the exporting countries were avoiding major cuts in production for the past few months.
OPEC Plus has said that this decision has been taken in view of the uncertainty in the global economic and crude oil market scenario.
However, the cut in production will not have a significant impact on the price of oil and the price of petrol and diesel made from it as the members of OPEC Plus are not able to meet the quota already fixed.
Crude oil is at a three-week high.
Crude oil prices hit a three-week high after the decision to cut production.
On the other hand, Russian Deputy Prime Minister Alexander Novak has said that if Western countries set price limits, then crude oil production can be cut to deal with its adverse effects.
Russia is also a member of the OPEC Plus organization.
White House spokeswoman Carine Jean-Pierre has said that the decision to cut oil production shows that the OPEC Plus organization is increasing ties with Russia. This is a wrong and misleading decision.