The Organization of the Petroleum Exporting Countries, in its recent statement told the IMF, that the shortage of supply and increase in petrol prices is mainly because of Ukraine crisis. Furthermore, the group signals that it will not add oil supply any further.
Earlier the IMF stated that the crude oil prices of global benchmark Brent crude is above $18 from what it was in the last 3 months of 2021. Currently, the petrol prices are near $98 per barrel in the first quarter.
OPEC statement to the IMF, regarding the increasing Ukraine crisis
The OPEC in its statement said, “Oil prices have been on the rise, particularly in March this year mainly due to the escalating geopolitical tensions in Eastern Europe, specifically the Ukraine crisis and concerns this might result in large oil supply shortages, amid trade dislocations.”
OPEC is constantly avoiding calls from the US and UK to increase the petrol supply to cool down the prices. The oil prices in Washington crossed the 14-year record. The petrol prices crossed the $139-mark last month, due to the imposition of sanctions on Russia.
However, amidst soaring prices OPEC+ (which Russia is a part of) plans to increase the output by 432,000 barrels per day in May. Currently, the OPEC+ was making output cuts due to the pandemic.
Edited By: Aaradhana Singh
Published By: Akshaj Joshi
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