The reason behind oil price hike, is Saudi Arabia responsible?
Saudi Arabia: Oil prices have increased after Saudi Arabia said it would make cuts of a million barrels each day (bpd) in July.
Other fellows of Opec+, a group of oil-producing nations, also decided to continue production cuts to shore up flagging costs. Opec+ accounts for about 40% of the planet’s crude oil, and its decisions can seriously affect oil prices.
In Asia trade on Monday, Brent crude oil increased by as much as 2.4% before settling at about $77 a barrel. Opec+ said production targets would fall by 1.4 million bpd from 2024.
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The seven-hour-long session on Sunday of the oil-rich countries came against a backdrop of declining energy costs. Oil prices skyrocketed when Russia attacked Ukraine last year but are now back at levels seen before the conflict started.
In October previous year, Opec+, a formulation directed to the Organization of Petroleum Exporting Countries and its partners, slashed production by two million bpd, nearly 2% of international demand.
In April this year, the group decided to further cuts due to last till the end of this year. But Russian Deputy Prime Minister Alexander Novak said that Sunday’s discussions led to “the extension of the contract until the end of 2024”.
Source – BBC
