Crude oil prices continue to rise in the international markets. Experts are saying that now the price of crude oil can go above $100 per barrel in the international market. Experts say that this may be due to reduction in production of crude oil by OPEC plus countries and its control.
For information, let us tell you that at present the international crude oil prices are running around $75 per barrel. Which is the highest level since 2019. In the coming time, further increase can be seen in this. Recently, the price of crude oil had gone above $ 75 per barrel. If international crude oil prices reach $100 per barrel, it will be the highest level of crude oil prices since 2014.
OPEC+ countries refuse to increase crude oil production
Crude oil prices can go above $100 per barrel. Experts are giving many reasons for this. At the international level, now the fear about coronavirus is going to end. This is opening up the economy. Due to this the demand for crude oil is increasing continuously at the international level. While its supply is still limited. OPEC+ countries are not ready to increase the supply of crude oil internationally. Which is the largest group of crude oil production internationally.
In the recently held open plus countries meeting, it was said that, the production of crude oil will still be limited and it will be increased gradually. Due to this, hopes of lower crude oil prices also ended.
Recently India had demanded that OPEC+ countries should now increase the production of crude oil. But OPEC+ countries rejected this demand of India. Saudi Arabia said that when crude oil had gone around $ 0 per barrel. At that time you had accumulated a lot of reserves. You should use that oil. This shows that OPEC+ countries will not increase the production of crude oil at any cost.
Earlier Morgan Stanley and another group had predicted for crude oil prices, that it could go above the level of $75 per barrel. However, now he has revised this estimate once again. Morgan Stanley says that now international crude oil prices can go above $100 per barrel. Which is an alarm bell for economies like India. For information, let us tell you that India imports 80% of its crude oil from outside to meet its energy needs.
OPEC countries want to compensate their deficit
OPEC+ countries say that crude oil prices had gone down to their lowest level earlier. In such a situation, he had to bear a heavy loss for this. Now he wants to make up for this loss. The biggest impact of this was on the Gulf countries. For information, let us tell you that Russia and America are also included in the world’s largest crude oil producing countries.
Saudi Arabia had to stop its big project. Apart from this, he had to reduce the subsidy given to the people. This had a clear impact on its economy. Apart from this, Qatar and other countries have also faced difficulties due to low crude oil prices. However, now the Gulf countries are also engaged in increasing the production of other things besides crude oil. in order to reduce dependence on crude oil. But these Gulf countries say that now we will increase the production of crude oil only when our earlier deficits are met.
What will be the effect of crude oil prices on the international economy
After the coronavirus recession, now the economy of the country and the world seems to be emerging. However, crude oil prices have increased the difficulties of economies around the world. Especially those countries which are dependent on foreign countries for crude oil.
Let us tell you for information that developing countries around the world depend on Gulf countries to meet their energy needs. And from there, most of the crude oil is exported. Saudi Arabia is the largest exporter of oil. Apart from this, America Russia is also involved in this race.
The international agency was speculating that a nuclear deal could be concluded between the US and Iran. But due to the election of a new fundamentalist president, this agreement now seems difficult. However, the President has said that we will stick to this agreement. Because it was done by former President Hassan Rouhani. If this agreement was concluded between Iran and America, then it would increase the supply of crude oil internationally. Due to which its prices could be expected to come down. But now that doesn’t seem to be happening.
At the same time, there is also news that if there is an agreement between America and Iran, then Saudi Arabia is also going to play an important role in it. Saudi Arabia is talking to Iran about the prospects of a deal. And an agreement to limit crude oil production could be in place soon. If this happens, there will be a shortage of crude oil at the international level. And this will keep the prices going up.
The economy of countries like India is still passing through difficult times. The growth rate of the economy in India recently was – 7.3%. In such a situation, the difficulties for developing countries like India are not going to reduce in the coming days. Unemployment has reached its highest level in developing countries. The possibility of increasing hunger and poverty cannot be ruled out. The biggest impact of this poverty is bound to be on children and women. Due to this the incidents of malnutrition and child marriage can also increase in the coming time. Along with this, the education of children and other important projects can also be put on hold.
This will be because most of the countries are currently spending their budget on the vaccination program. In such a situation, they no longer have much money left for basic services like education and health. The condition of countries like Sri Lanka, Nepal, Uganda, Sudan has worsened to the point that they have to resort to foreign loans even for vaccination.
What is the strategy of OPEC plus countries regarding crude oil prices?
It is now clear that OPEC+ countries do not want to let the international crude oil prices work. But what could be the reason for this?
Crude oil producing countries have now understood that the world is not going to depend on crude oil for long. Due to the development of new technology, the demand for crude oil will definitely reach its lowest level in the coming days. In view of this, OPEC Plus wants to make maximum profit from crude oil. In order to prepare our economy for the coming change.
The demand for crude oil will definitely decrease internationally in the coming times due to electric cars powered by lithium-ion batteries. In view of this, crude oil producing countries are preparing. The development of hydrogen fuel is also continuing at the international level. In this regard, infrastructure is also being built. However, it is still going to take a long time to adopt hydrogen as a fuel. But now crude oil producing countries want to adopt it. They feel that we too will now have to shift to hydrogen and electric vehicles. In view of this, countries like Saudi Arabia, America have decided to invest billions of dollars for the development of hydrogen technology.
Saudi Arabia has set a target to build an entire city based on hydrogen energy. And its construction work has also started. For this reason, considering the demand for crude oil at present, OPEC+ countries want to earn maximum profits. Due to this also the price of crude oil at the international level has remained high. And there is no hope of its reduction in the coming few years.
Saudi Arabia’s Crown Prince Mohammed bin Salman has already said that after crude oil, now Saudi Arabia is preparing to export green hydrogen to the world. Saudi Arabia will have to invest billions of dollars in this process. For this reason Saudi Arabia is now earning maximum profit from crude oil. And is investing this profit in plans for hydrogen and electric vehicles. So that any financial difficulties can be saved from coming. Even before this, Mohammed bin Salman has said that if we want to remain self-reliant, then our country’s dependence on crude oil has to be reduced. Now all other Gulf countries including Saudi Arabia are making a strategy regarding this.