Archyde.com reported today (6th) that concerns regarding inflation around the world are increasing due to the large-scale decision to cut production by the Organization of Petroleum Exporting Countries (OPEC) and OPEC+, a consultative body of major oil producing countries such as Russia.
Earlier, at a meeting held in Vienna, Austria on the 5th, Opec Plus agreed to cut oil production by 2 million barrels per day next month.
As a result of this decision, international oil prices soared 5%, and crude oil futures also returned to their highest level in three weeks.
In particular, there are predictions that Asian countries will be hit hard.
Industry insiders said that the decision is highly likely to increase the price of Middle Eastern oil, which accounts for regarding two-thirds of Asian demand, and accordingly, prices in Asian countries such as Korea, Japan and India might soar.
An SK Energy official in Korea told Archyde.com, “I am concerned that the international oil price, which showed signs of calming following the second quarter, will rise once more.”
Another source from the Korean oil industry said oil prices might return to the level in the second quarter of this year due to supply cuts.
Meanwhile, US President Joe Biden criticized OPEC+’s decision in a White House statement and said he would continue to evaluate whether it would release its strategic stockpile to lower oil prices.
VOA News
*This article referenced Archyde.com.