Saudi, Opec Plus nations announce to slash crude oil production – crude oil rates in the int’l markets may touch $100, experts warn

Dubai/ Washington – Saudi Arabia and OPEC Plus member countries gave a strong blow to the US on Sunday. From May 1, Saudi Arabia and OPEC plus countries announced a reduction in fuel production of 11 lakhs and 50,000 barrels per day. This has resulted in the American fuel market and crude oil prices have to increase by five percent. Analysts warn that crude oil prices, currently at $80 per barrel, will soon touch $100. This matter can be dangerous for the economies of European countries along with the Biden administration of the United States. Along with other fuel-producing countries, this will greatly benefit the Russian economy.

Moreover, Saudi Arabia, which influences the Gulf and oil-producing countries, was the first to announce cuts in fuel production on Sunday. According to information released by the Saudi Ministry of Energy, the reduction will be as much as five lakh barrels daily. The Saudis said the move was to stabilize the fuel market. After Saudi Arabia, Russian Deputy Prime Minister Alexander Novak announced a fuel cut of 500,000 barrels per day after Saudi Arabia. It was followed by Iraq (2,11,000), UAE (1,44,000), Kuwait (1,28,000), Kazakhstan (78,000), Algeria (48,000) and Oman (40,000), separately announced cuts in fuel production as well.

Furthermore, this reduction will start from May 1, 2023 and continue till the year-end. This is a completely new reduction and the mouthpieces of the respective countries are claiming that it has nothing to do with the fuel reduction made by Saudi and Arab allies in October last year. After the Russia-Ukraine war broke out last year, the fuel crisis hit European countries. US President Joe Biden demanded that Saudi Arabia and UAE increase fuel production by going against Russia to break this dilemma. But Saudi and UAE had rejected Biden’s demand.

Then in October, fuel-producing countries announced a reduction of 2 million barrels per day. Amid mid-term elections in the United States, the Biden administration, angered by the decision taken by the OPEC member countries, had warned to withdraw military assistance from Saudi Arabia and the UAE. After this, there were reports that the petrodollar system in the United States and Arab countries, i.e. the system that buys fuel in dollars, was shaken. But the opposition leaders in the United States criticized the irresponsible policies of the Biden administration were responsible for this decision of Saudi Arabia and the UAE. Due to this new fuel cut by the OPEC plus countries, strong criticism of the Biden administration has started again in the United States.

US President Biden has been in power for over two years and has cracked down on cooperation with the Gulf countries. Besides, the US leaders and media are alleging that because of the Biden administration, Saudi Arabia, the UAE and other Arab allies who were once American allies have joined the group of Russia and China. Currently, fuel prices are around $80 per barrel. But US news channels and analysts are warning that if the Biden administration does not restore cooperation with Saudi, fuel prices will go up to $100.

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