I wrote – Marwa Al Ghoul
Thursday, 06 April 2023 02:00 PM
Oil prices recorded today, Thursday, 84.64 dollars a barrel for Brent crude futures contracts, and US West Texas Intermediate crude futures contracts recorded 80.21 dollars.
Dr. Muhammad al-Bahwashi, an economist, said that OPEC’s decision to reduce its oil production causes inconvenience to the world’s major countries, which depend entirely on oil in their daily lives and industrial fields.
Al-Bahwashi added, through a telephone interview on the “Extra News” satellite channel, on Wednesday, that the reduction in oil production that we are witnessing today is not the first reduction, adding: “It happened before that last October, as we exceeded the reduction in production of 3 million and 750 thousand barrels.”
And he continued: “I think that this reduction will affect the lack of supply, which will lead to a significant increase in oil prices in the coming period, and this step came as a result of several reasons, as the negative indicators that are issued day after day by all international financial institutions, expect the continuation of the state of deflation and a slowdown.” Growth with continued uncertainty.
The United States criticized the decision of the “OPEC +” organization to reduce oil production by more than two and a half million barrels per day, starting next May.
The strategic communications coordinator at the US National Security Council, John Kirby, said, according to the American satellite channel, Al-Hurra, that the sudden cuts announced by OPEC + are illogical at this time.
For its part, the International Energy Agency warned that OPEC + cuts raise the risk of exacerbating market turmoil and raising oil prices, amid inflationary pressures.
A number of oil ministries in Saudi Arabia, Russia, Kuwait, Iraq, the Emirates, Algeria, the Sultanate of Oman and Kazakhstan announced a voluntary cut in oil production from next May until the end of 2023, by more than 1.65 million barrels per day.
