Washington / Riyadh – The decision to maintain the fuel supply limit was taken at a recent meeting of the OPEC and OPEC Plus groups of fuel-producing countries. As a result, crude oil prices have continued to rise; they have crossed the $80 per barrel mark in the international market. On Friday, the crude oil price was $83 per barrel in the international market and $80 in the US market. This is the highest rate since 2014.
There are signs that the global economy has been recovering from the Corona epidemic crisis in the last two months. As a result, demand for fuel as well as electricity has started increasing. But at the same time, lower production of coal, natural gas and crude oil has led to a rise in prices. The agreement to increase fuel supply was agreed upon at a meeting of the OPEC and OPEC Plus groups in July.
Under the agreement, crude oil production has been increased by four lakh barrels per day since August. However, the demand for crude oil is growing rapidly. Moreover, the supply has been limited and this has led to an increase in prices. In August, the Biden administration in the United States instructed the OPEC group of fuel-producing countries to increase production. But OPEC has rejected the US suggestion and has decided to stick to the agreement.
On Friday, the international crude oil prices rose 1.7 per cent to $83.32 per barrel. At the same time, West Texas crude futures in the US have jumped more than two per cent to cross the $80 mark. These rates are said to be the highest in the last seven years. According to sources, oil prices have risen by 60 per cent this year alone.
Following the rise in crude oil prices, major financial institutions and analysts have predicted that oil prices could cross the $100 a barrel level once again. Bank of America Global Research has claimed in this regard. And Goldman Sachs has said that crude oil prices will remain above $90 by the end of the year.
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