New Delhi: Saudi Arabia will cut oil supplied around the world. This will lead to an increase in crude oil prices.
According to the information, Saudi Arabia will cut oil supplies by one million barrels per day starting July. Earlier, at a meeting in Vienna, OPEC and partner countries agreed to cut oil production.
Addressing a news conference, Saudi Arabia’s Energy Minister Abdulaziz bin Salman said the cut could also be extended and the group would do whatever it could to bring stability to the market.
George Lyon, senior vice president of oil markets research at Rystad Energy, said the new cuts will push up oil prices for some time, but what impact it will have after that will depend on Saudi Arabia.
He said that such a move by Saudi Arabia some time ago gave American drivers the opportunity to fill their vehicles at cheaper prices and consumers around the world also got some relief from inflation. But now with this move, gas will not be cheaper, but oil will be slightly more expensive, he said.