After OPEC cut oil production, the prices of petroleum products started to increase in the world market.
According to foreign media, oil prices and futures rose sharply as markets opened for business in Asia and Oceania. This happened because of the sudden announcement yesterday by Saudi Arabia, Iraq and other Gulf states that oil production is being cut further than previously planned.
According to the news agency, oil prices are likely to increase further after the market opens in Europe and America. Brent crude oil prices rose more than 6 percent and rose above $85 a barrel. The US West Texas Crude Index also rose $4.88 to $80.55.
OPEC, the Organization of the Petroleum Exporting Countries, says the decision to cut production is a precautionary measure to stabilize the market.
Production will be cut by more than a million barrels per day from May to the end of this year. This is the biggest cut since OPEC decided to cut production by two barrels a day in October.
OPEC Plus countries produce more than 40 percent of the world’s crude oil.
For oil importing countries, especially less wealthy countries including Pakistan, rising oil prices will severely affect their finances. Given that there is no prospect of a drastic reduction in oil consumption, they will also face rising prices per barrel for the commodity and may have to pay extra in US dollars instead of their own currency.