New Delhi: Due to the rise in petroleum prices, all the countries of the world have come under the spell of inflation. Inflation is also rising in the US, but major oil exporters have not agreed to increase crude oil production in any way. Saudi Arabia, one of the world’s largest oil producers, has said it will not take any action to stem rising oil prices. Saudi Foreign Minister Prince Faisal bin Farhan has said that if there is no shortage of oil then on what basis should crude oil production be increased.
Saudi Arabia will not increase oil production
According to the International Energy Agency (IEA), Saudi Arabia is the world’s largest exporter of crude oil. In March, the IEA drafted a 10-point plan to export more oil from stocks in an effort to curb rising oil prices. “As far as we know, there is no shortage of oil,” Prince Faisal bin Farhan was quoted as saying at the World Economic Forum in Davos on Tuesday. Saudi Arabia has done what it could in this case.
Rising world oil prices The main reason Russia-Ukraine war
The Russia-Ukraine war is the main reason behind the rise in world oil prices. Russia is one of the largest oil producing countries in the world. Strict sanctions were imposed on Russian oil due to the invasion of Ukraine. This led to a shortage of oil in the global market. Crude oil prices have risen by 70 per cent compared to last year. Crude oil, which was $ 110 a barrel after the Russia-Ukraine war, has risen 20 percent. The Saudi foreign minister made it clear at the World Economic Forum that his country would not increase crude oil production in any way. “Our assessment is that the oil supply is relatively balanced at the moment,” he said. But the problem we are facing is more difficult than bringing crude oil to market.
India also worried about oil prices
Rising oil prices have pushed up prices in India, the US and other countries. Inflation in the US was 8.3 percent in April. Inflation in India was 7.8 per cent in April. This inflationary situation could become more serious later. IEA executive director Fatih Birol also warned that rising oil demand over the summer could lead to a global recession.
Don’t increase the supply of crude but invest more in the oil refinery: Prince Faisal
Birol, executive director of the IEA, said the summer would be difficult as demand for oil generally increased during the summer. Every country needs to contribute to controlling oil prices in the global energy market. But Prince Faisal argues that energy prices can be raised not by increasing the supply of crude but by investing more in oil refineries. He further said that the real problem is refined oil. Very little has been invested in increasing the capacity of the refinery in the last one and a half years.