Oil prices will be on fire from May! Saudi Arabia will cut production by 5 million barrels per day

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Dubai/New Delhi : There is a possibility of a huge increase in the prices of crude oil in the international oil market from the coming month of May. The reason for this is that oil-producing countries, including Saudi Arabia, have announced on Sunday to cut crude oil production by about 5 lakh barrels per day from the month of May till the end of the year 2023. This is such a step that can set the prices of crude oil on fire in the international oil market. Saudi Arabia has said that it will cut oil production by half a million barrels per day from May till the end of 2023.

Will Russia benefit?

Let us tell you that there has been a war between Russia and Ukraine for more than a year. It is being said in the media report that Russia can get the benefit of the increase in the prices of crude oil in the international market. However, after this war, inflation has increased a lot in the whole world and all the western countries including America have imposed many types of sanctions on Russia. However, after the ban on crude oil exported from Russia, crude oil produced by America was also sold in the international market, but due to its high prices, it could not last long in the market.

Tension may arise in America-Riyadh

If media reports are to be believed, then cutting the production of crude oil can create tension in the relations between America and Riyadh. It has been said in the report that this move of Saudi Arabia may increase the oil prices, due to which there may be further tension in the relations between Riyadh and America. Due to the Ukraine-Russia war, the whole world is already facing inflation. Saudi Arabia’s energy minister said on Sunday that the cuts would be made after coordinating with some OPEC and non-OPEC members. However, he did not name anyone. This reduction will be in addition to the reduction announced in October last year.

Saudi Arabia told precautionary measures

Saudi Arabia has described this step as a ‘precautionary step’ aimed at stabilizing the oil market. Saudi Arabia and other OPEC members angered the US government last year by slashing oil production. At that time mid-term elections were about to be held in America and inflation was a major election issue.

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