OPEC refuses to increase crude production, fuel prices may rise

OPEC refuses to increase crude production, fuel prices may rise
OPEC refuses to increase crude production, fuel prices may rise

OPEC refuses to increase crude production, fuel prices may rise

New Delhi
Petrol and diesel prices are set to rise every second day. This is because the major oil producing countries have refused to increase production. With this decision, crude oil went above $ 80 a barrel. Global analysts say that due to the US sanctions, the supply is expected to cross $ 100 a barrel after the supply has come down.

On Tuesday, the price of petrol in Mumbai was Rs 90.22 per litre, while diesel increased to Rs 78.69 per litre. Retail prices of petrol and diesel in Delhi are up 82.86 and 74.12 per litre respectively. The government has already refused to reduce the excise duty by citing the condition of the treasury. Under the leadership of Russia, Oil Producers and Exporting Countries (OPEC) and their colleagues last week had decided that they would not raise production to meet any shortfall in supply from Iran affected by the ban. Following on Monday, crude oil prices climbed $ 2 a barrel and reached $ 81 a barrel.

Saudi Arabia has argued that there is no such problem with supply, due to which the production has to be increased further and all the countries are getting crude oil as per their requirement. OPEC’s decision is being seen as a shock for American President Donald Trump, who was demanding immediate increase in supply of oil prices. Due to petroleum-related restrictions, oil exports from Iran are increasing rapidly, which will be effective from 4th November.

According to sources, Treffigura’s Co-Head (oil trading) Ben Lucock has said in a conference that crude oil can go up to $ 90 a barrel by the Christmas and $ 100 a barrel in the beginning of 2019. Significantly, India imports 83% of its requirement of crude oil. Its difficulties are also increasing due to the consistently weak rupee against the dollar. The rupee fell to a level of 72.50 against the dollar on Monday.

US President Donald Trump gave his speech at the United Nations General Assembly. In it Trump praised India for making a successful effort for the poor, and also launched a fresh attack to oppose OPEC’s non-oil production. Speaking a fresh attack on Iran in the United Nations 73rd program, Trump said that the country is increasing chaos, death and destruction. We want all the other countries to leave it alone until it is removed from this path.

by-gns