Importing crude oil can be expensive, economy – consumers may have to bear the brunt!

Crude Oil Price: OPEC+, an organization of recent crude oil producing countries, has decided to cut crude oil production. After which there has been a jump of 15 percent in the prices of crude oil. Now the International Energy Agency (IEA) said that the decision of OPEC+ countries to cut crude oil production could prove to be risky for the global economy. The International Energy Agency said that due to this, prices are expected to increase and there can be a sharp jump in the import bill of countries like India.

Fatih Birol, head of the Paris-based International Energy Agency, said that in the second half of 2023, there were signs of tightening in the global oil markets, which would have faced a supply shortfall. Talking to reporters after the bilateral meeting of Commerce Minister Piyush Goel, he said, due to additional cut in production, the pressure on prices may increase. He said that at present, when the global economy is in a very critical phase and many emerging economies are facing economic crisis, this decision of OPEC+ countries can prove to be risky for the global economy.

On the possibility of going above $ 100, he said that, now crude oil is at $ 85, and keeping in mind the second half of this year, I believe that the price can go above the current level. He said that India is a major energy importing country. Due to the decision of OPEC countries, India’s imports can become expensive. Whose burden may have to be borne by the Indian economy and consumers. High prices of crude oil will not only increase the inflation, it will affect other commodities as well. Because India depends on imports.

India imports about 85 percent of its crude oil consumption. And being the world’s third largest importing country, India is also at the third place in terms of consumption. In 2022-23, India spent $ 118 billion on the import of crude oil. On importing cheap crude oil from Russia, he said that India is doing this in a transparent manner under international rules and regulations.

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