Reuters reported today (6th) that inflation concerns around the world are mounting due to the large-scale decision to cut production by the Organization of the Petroleum Exporting Countries (OPEC) and OPEC +, an advisory body of major oil producing countries such as Russia.
Earlier, at a meeting held in Vienna, Austria on the 5th, Opec Plus agreed to reduce oil production by 2 million barrels per day next month.
As a result of this decision, international oil prices rose 5% and crude oil futures also returned to their highest level in three weeks.
In particular, Asian countries are expected to be hit hard.
Insiders said the decision is very likely to increase the price of Middle Eastern oil, which accounts for around two-thirds of Asian demand, and as a result, prices in Asian countries such as Korea, Japan and India could rise.
An SK Energy official in Korea told Reuters: “I am concerned that the international price of oil, which has shown signs of calm after the second quarter, will rise again.”
Another source from the Korean oil industry said oil prices could return to the level in the second quarter of this year due to supply cuts.
Meanwhile, US President Joe Biden has criticized OPEC + ‘s decision in a White House statement and said it will continue to consider whether it will release its strategic stocks to lower oil prices.
VOA News
* This article referred to Reuters.
