Reduction possible in oil production by OPEC Plus countries following fuel

Washington/Moscow/Vienna: Western countries have approved a proposal to keep the price of crude oil exported from Russia at 60 dollars per barrel. G7, European Union and Australia announced this on Friday. US Treasury Secretary Janet Yellen responded that this decision would cut off the flow of funds to Russian President Vladimir Putin’s conflict in Ukraine. Meanwhile, the OPEC Plus countries have signalled to further reduce crude oil production in the wake of restrictions imposed on Russian fuel prices.

A few weeks ago, the ‘G7’ group, the world’s advanced countries, presented a proposal to cap the price of Russian fuel. Despite opposition from US and European officials and study groups, the proposal was pushed forward. As European countries are importing Russian fuel in large quantities, there needed to be a consensus among these countries. Ursula von der Leyen, head of the Union, said that the European countries approved the price of $60 per barrel at the meeting of the Union held on Friday.

After the declaration by the European countries, G7 and Australia also announced that they approved the proposal to impose a price cap on Russian fuel. This decision will be implemented from Monday. Most European countries, including the United States, have welcomed this decision. Western sources claimed that the new deal would reduce Russian revenues against the Ukraine conflict’s background and could impact Russia’s aggression.

The Russian Embassy in the United States strongly criticized the announcement of capping fuel prices. This is a very dangerous development and will not reduce the demand for Russian fuel. The Russian embassy warned that the decision to limit the rates is against the free-market principles and could have dire consequences. OPEC Plus countries are meeting on Sunday against the background of this price cap announced by Western countries. It has been indicated that a decision will be taken to further reduce the production of crude oil by the OPEC plus countries will be taken during the meeting. It is said that the OPEC Plus group, which includes Russia, may cut production by up to 500,000 barrels per day.