Riyadh: The Organisation of the Petroleum Exporting Countries (Opec) has decided to increase the daily production to control the price increase. Fuel prices have touched the highest in the last two years and this has forced OPEC to take this decision. At present, crude oil is priced at US dollar 74 dollar per barrel. Till July, the crude oil price surged by 43%.
As per the new decision, UAE, Saudi Arabia, Russia, Kuwait and Iraq will increase the daily production of crude oil. Overall production will increase by 400,000 barrels per day. Last year, OPEC has reduced production by 1 crore barrels as the demand for fuel reduced due to Covid-19 restrictions that were imposed across the globe. But this year the demand for fuel increased as several countries lifted restrictions.
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Earlier many market analysts predicted that the oil price may touch US dollar 80 per barrel in the second half of 2021. On Friday, Brent crude oil closed at US dollar 73.59 a barrel and US crude oil for August delivery settled at US dollar 71.81 a barrel.
This decision will be a blessing to Indian consumers as the price of petroleum fuels has touched an all-time high in the country. India, one of the biggest importers of crude oil will be benefitted from this decision. The fuels prices will come down in the country as oil companies in India revise the price as per international price.
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