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Gulf countries’ production cut on crude oil will not spoil the budget of common people

Crude oil producing countries of the world have once again announced oil production cut. Some OPEC member countries and Russia are included in this production cut. This production cut will be up to 2.2 million barrels per day. In which about half the production cut will be done by Saudi Arabia. After that, other countries including Russia will cut production by more than 1 million. According to experts, the effect of increase in this production cut is not going to spoil the budget of common people.

According to experts, elections are going to be held in many countries of the world. On the other hand, America is also busy in increasing production. Apart from this, the economic figures of many countries of the world including Europe, China and America are very bad. Due to which the demand is very low. This is the reason why it is being said that no matter how much the Gulf countries produce, the budget of the common people is not going to deteriorate.

OPEC Plus cut production

Some members of OPEC, the organization of oil producing countries led by Saudi Arabia, and countries like Russia are taking the voluntary cut in crude oil production further. The OPEC Secretariat said on Sunday that many OPEC Plus countries have expanded production cuts by about 22 lakh barrels per day. Saudi Arabia has decided to extend its 1 million barrel per day cut until the end of the second quarter of 2024.

Energy Ministry sources say that this extension of production cut means that Saudi Arabia will produce 9 million barrels of crude oil per day by the end of June. Apart from this, Russia on Sunday also announced a voluntary additional cut of 4,71,000 barrels per day in the second quarter. OPEC says it will also continue small volume cuts in Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman.

No effect visible in prices

After the announcement of extension of production cut, there has been no impact on the international market crude oil prices. According to the data, at present the price of crude oil i.e. Brent crude oil of Gulf countries is trading at $ 83.60 per barrel. While the price of American crude oil is trading at $ 79.91 per barrel. However, in the current year, the oil prices of Gulf countries have seen a rise of more than 8 percent. Whereas the price of American oil has seen an increase of more than 11 percent. According to experts, whenever OPEC Plus countries have increased the tenure of voluntary cuts, there has been a rise in the price of crude oil. This has not been seen like this. We may definitely see some growth in the coming few months, but it will not be much.

Why did the price of crude oil not increase?

While talking to TV9 Bharatvarsh, Director of Kedia Advisory, Ajay Kedia said that at present the economic figures of big countries like Europe and America along with China have not improved, due to which there is a decline in the demand for crude oil. On the other hand, America has also increased its crude oil production. Due to which no effect of production cut has been seen in the prices. He further said that the effect will not be seen in the coming days also.

Petrol and diesel prices will not increase

Kedia said that the effect of crude oil production cut will not be visible in the prices of petrol and diesel. Explaining the reason for this, he said that there are elections in many countries of the world including America and India. Because of which no country is in a mood to increase the price of fuel. This clearly means that even if the price of crude oil increases in the next few months due to production cut and increase in demand, there will be no increase in the price of fuel. Which will be a great relief news for the common people.

Price of petrol and diesel in major cities of the country

  1. New Delhi: Petrol rate: Rs 96.72 per liter, Diesel rate: Rs 89.62 per liter
  2. Kolkata: Petrol rate: Rs 106.03 per liter, Diesel rate: Rs 92.76 per liter
  3. Mumbai: Petrol rate: Rs 106.31 per liter, Diesel rate: Rs 94.27 per liter
  4. Chennai: Petrol rate: Rs 102.63 per liter, Diesel rate: Rs 94.24 per liter
  5. Bengaluru: Petrol rate: Rs 101.94 per liter, Diesel rate: Rs 87.89 per liter
  6. Chandigarh: Petrol rate: Rs 96.20 per liter, Diesel rate: Rs 84.26 per liter
  7. Gurugram: Petrol rate: Rs 97.18 per liter, Diesel rate: Rs 90.05 per liter
  8. Lucknow: Petrol rate: Rs 96.57 per liter, Diesel rate: Rs 89.76 per liter
  9. Noida: Petrol rate: Rs 96.79 per liter, Diesel rate: Rs 89.96 per liter

Since when has the price not changed in India?

There has been no change in the prices of petrol and diesel in India. The last change in the prices of petrol and diesel in the metropolitan cities of the country was seen on May 21, 2022. At that time, the country’s Finance Minister Nirmala Sitharaman had reduced the tax on the price of petrol and diesel. After that some states tried to influence prices by reducing or increasing VAT. The interesting thing is that ever since the prices of petrol and diesel started changing daily in the country as per the international market, this is the first time that petroleum companies have not made any changes during the record timeline.

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