Oil producing states drop petrol bombs on developing countries

Vienna: The Organization of the Petroleum Exporting Countries (OPEC) Plus, the alliance of major crude oil producers, has dropped another petrol bomb on poor countries. The OPEC’s policy dashed the hopes of reduction in the price of crude oil.

According to the details, the OPEC Plus group refraining from increasing oil production and supply has increased the price of crude oil in the global market.

OPEC adopted a policy of not increasing production and supply to prevent any fall in prices. Refraining from increasing supply even on the ceasefire between Hamas and Israel will not allow the price to fall because the news of the possibility of a ceasefire between Israel and Hamas caused the price of oil in the world market to drop, which caused OPEC to suffer a lot.

It is pertinent to note that the Houthi militia's attacks on oil tankers and other commercial vessels in the Red Sea have disrupted global trade. Alternative routes have also increased the price of oil and other commodities.

Supplies from non-OPEC oil exporting countries will remain subdued during the first quarter of the year. US is also reducing its oil production. OPEC will decide in March whether to increase or freeze production.

The OPEC and Russia-led alliance of oil-selling countries cut the daily supply of oil by 2.2 million barrels to keep the price of crude oil stable in the world market.

Notably earlier on Thursday, Brent oil in the global market closed at $79.20 per barrel with an increase of 50 cents or 0.6%. On the other hand, US West Texas Intermediate crude futures rose 40 cents to settle at $74.22 a barrel.