ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -The cut helped drive up the price of American benchmark oil almost $10 per barrel, from $80, though it has since lost half those gains. Rising oil and gasoline prices are hurting American consumers across the retail landscape and at the gas pump.

Detailed explanation-3: -Output from OPEC and allies including Russia, known collectively as OPEC+, increased for most of 2022 as demand recovered. For November, with oil prices weakening, the group made its largest cut to production targets since the early days of the COVID-19 pandemic in 2020.

Detailed explanation-4: -OPEC is trying to prop up oil prices as global demand slows down OPEC and its allies plan to slash oil output by 2 million barrels a day to prop up oil prices. Gasoline prices are rising again in the U.S., but the effects vary in different parts of the country.