????Happy big day everyone
- The effects of reducing production – OPEC Plus by 1.15 million barrels per day:
1- Impact on oil prices: Reducing production by 2 million barrels per day may lead to an increase in oil prices due to reduced supply, and thus increased demand, but this depends on the extent of the impact of the reduction on the global oil market and alternative supplies.
2- Impact on the economy: High oil prices can lead to an increase in the cost of production and transportation, thus increasing the total costs of products and services and may lead to an increase in inflation.
3- Impact on politics: Reducing production may lead to a change in international relations and foreign policies of oil-producing and consuming countries. This may lead to increased cooperation between countries or an increase in conflicts and tensions.
4- Enhancing the profits of oil companies in the second quarter and during 2023.
5- In the event that the interest rate is fixed at any time, high oil prices can cause inflation to rise.
6- Britain will be affected by the presence of high inflation at 10.4%, which increases its energy crisis and growth rates.
7- Changing the perception of investors from technology companies to oil companies, given the future view of raising prices.
Universal statements:
In response, the administration of US President Joe Biden said that the sudden cuts in oil production announced by Saudi Arabia and other countries in OPEC + today, Sunday, are illogical. “We don’t think the cuts are reasonable at this time given the uncertainty in the market, and we’ve made that clear,” said a spokesperson for the National Security Council.
Shortly after announcing the production cut, the head of the investment company (Pickering Energy Partners) said today, Sunday, that the unexpected reduction of production by OPEC producers by 1.15 million barrels per day could raise world oil prices by ten dollars a barrel. Dan Pickering, co-founder of the Houston-based company, said the production cuts “will provide tangible support for prices.” “It is possible that prices will move $10 (a barrel) of crude,” he added in an interview.
Source: DW.com
Have a nice and blessed day
