BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Explained: OPEC+ Oil Production Cuts, Concerns Over Price Hike, And How Is The World Reacting. Oil prices have started to rise with the announcement of OPEC+ countries to reduce oil production. Lower supply would result in higher prices, which would worsen situations in countries already reeling under inflation.

Detailed explanation-2: -OPEC Plus Decision to Reduce Oil Output Could Lead to Global Recession. A decision earlier this month by a group of the world’s largest oil exporters to drastically reduce oil production to stem the decline in oil prices could be a ‘tipping point’ for a global recession, says the International Energy Agency.

Detailed explanation-3: -Because of this market share, OPEC’s actions have a huge influence on international oil prices. In particular, OPEC’s largest producer of crude oil, Saudi Arabia, has the most frequent effect on oil prices. Historically, crude oil prices have seen increases in times when OPEC production targets are reduced.

Detailed explanation-4: -Its members meet regularly to coordinate how much crude oil to sell collectively on global markets. “OPEC+ tailors supply and demand to balance the market, ” Kate Dourian of UK industry body the Energy Institute told the BBC. “They keep prices high by lowering supplies when the demand for oil slumps."

Detailed explanation-5: -Growth concerns: With increasing crude oil prices, inflation will increase, and to control inflation, the RBI will have to increase the interest rate. It will lead to lower spending, and hence the country’s growth will come down.