OPEC will increase oil production by 3.5 million barrels per day in May, 3.5 million barrels per day in June and 4 million barrels in July.
After a continuous increase in the prices of petrol and diesel since the beginning of the year, March saw some cuts. However, those weren't enough to bring relief to the common man's pockets.
Now with the Organization of Oil Exporting Countries (OPEC) and allies agreeing to maintain crude oil production cuts through April, we can hope for petrol and diesel prices to fall.
Production will increase by 20 million barrels every day
Oil-producing countries (OPEC) say they have decided to increase production by 2 million barrels per day from May to July, adding that they are taking these steps in view of the global economy that is recovering from the COVID-19 pandemic. OPEC countries had cut production, leading to rising crude oil prices.
How will production grow?
OPEC will increase oil production by 3.5 million barrels per day in May, 3.5 million barrels per day in June and 4 million barrels in July. Meanwhile, Saudi Arabia said it would restore additional production by 10 million barrels per day by itself.
Petrol-diesel prices to come down
The rise in crude oil production will bring down the price moderation, which can have a direct bearing on the prices of petrol and diesel in the country. India is largely dependent on imports from other units in terms of crude oil. India imports more than 80 cents of its oil requirement.
Crude oil crosses $64
You may recall that since March 2020, when the corona pandemic was at its peak all over the world, crude prices had become $30 a barrel. Today these are above $64. Crude oil prices had fallen significantly due to declining demand during the corona epidemic, so OPEC countries announced a reduction in production last year.
Union Petroleum Minister Dharmendra Pradhan had appealed to OPEC countries to increase crude price production so that oil prices could be stabilized. But the oil exporting countries did not respond to any reasonable response. Saudi Arabia had said that last year, when crude oil prices went down considerably, India could use the crude oil purchased at that time.
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