Geo Politics
OPEC+ has just decided to reduce production by 2 million barrels per day from November. That’s 2% of the total global crude supply which is about to vanish soon. The vacuum left behind will drive prices of one barrel of oil over the $100 mark. The production cut by the world’s strongest oil alliance – of which Russia is a major party – is aimed at stopping the slump in crude prices that have been witnessed recently. Prices fell from highs of over $120 a barrel in June, to $80 recently. That prompted paranoia among oil exporters of the world – who were startled by the prospect of their export revenues shrinking due to the falling prices. In comes Russia to motivate OPEC’s leader, Saudi Arabia to lobby for deep production cuts. Soon, the world’s largest oil alliance agrees to do Russia’s bidding and cuts daily output by 2 million barrels. Watch to know more.
Credit Firstpost
