Crude oil impact
The countries of OPEC Plus have also taken a big decision amidst the ongoing global tension in the world. OPEC countries have agreed to increase the production of crude oil in October. Productions of Aman Crude Oil increase their prices. The rates are slightly low. However, if this has been done due to lack of global demand, then this decision will support the price of crude oil. But if the price increases, India will be harmed. Also, India will not have much benefit from low rate.
OPEC+, which includes the organization of petroleum exporting countries, Russia and other allies. He has agreed to further increase oil production since October as its leader is trying to achieve the Saudi Arabia market share, while the speed of growth is slow compared to the previous months. OPEC+ oil has been increasing production since years after years of cuts to support the market, but the latest decision to further increase production amid the possibility of excess oil in the winter months of the Northern Hemisphere has surprisingly revealed.
Eight members of OPEC+ will increase production from October to 137,000 barrels per day, which is much lower than a monthly increase of about 555,000 barrels per day for September and August and 411,000 barrels per day in July and June.
The main reason for increasing production from OPEC countries is the decrease in global demand. If the demand improves, prices may increase. On the contrary, it may also be that if the production is high, the prices go down. India will not benefit much in both situations because at this time the country's currency is running quite weak against the US dollar. The rupee has crossed 88. In trade, India will benefit in the coming days or the loss will depend on the speed of the rupee. If the rupee breaks, then there will be no relief even if the price of crude oil falls.
India is one of the highest number of oil purchases in the world. The dependence for oil here is largely on the Gulf countries and Russia. If you talk about data, according to reports, India did about 232.5 million tonnes of crude oil in the year 2023-24. At the same time, India's dependence on imports increased by 87.7% to $ 1.5 billion. The total import bill of crude oil during this period was $ 132.4 billion.
