OPEC and its allies decided to cut oil production by 2.2 million barrels per day, which will continue until the second quarter of this year. The price of fuel oil has increased in the world market today on this news.
According to Reuters news, the price of Brent crude rose 28 cents or 0.3 percent to 83.83 dollars per barrel this morning. At the same time, the price of West Texas Intermediate or WTI crude oil increased by 20 cents or 0.3 percent to 80.17 dollars per barrel.
However, this position of OPEC and allied countries was not unexpected. The price of oil fuel was not rising much in spite of various setbacks in geopolitics. For that reason, the market thought that OPEC would take such a decision to increase the price.
At the same time, production in non-OPEC oil-producing countries is increasing. Analysts were also surprised by Russia’s announcement. Russia has announced that in the second quarter of this year, production and exports will be reduced by another 471,000 barrels per day.
Analysts at financial services firm ANZ said in a note on Monday that there is some tension in the oil market, which is driving up crude oil prices. Along with the geopolitical tensions in the Middle East, the way OPEC and its allies are reducing oil fuel production and supply has created anxiety in the market.
Meanwhile, due to the Israel-Hamas conflict in the Middle East and attacks by the Houthi rebels in the Red Sea, the price of oil in the world market has increased slightly this year, although the price has not increased much due to fears about economic growth.
US Vice President Kamala Harris on Sunday called on the Hamas forces in Palestine to immediately agree to a six-month ceasefire. At the same time, he urged Israel to increase humanitarian aid to Gaza.
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Reuters reported that Washington has begun efforts to implement a ceasefire between Hamas and Israel soon. A US official said on Saturday that Israel had agreed to a framework agreement on the matter.
