With the US decision to make India-China oil cheaper, there may be a conflict with OPEC

The US announced on Tuesday that it will release 50 million barrels of crude oil from its “strategic reserves” to reduce the price of petrol, so that it gives relief to the American people.

This concrete step of his was not limited to America only. The Biden government managed to persuade other major economies such as China, Japan, Britain, India and South Korea to do the same. Obviously, this helped in increasing the supply of oil in the market.

For the past year and a half, there has been an agreement between the member countries of the Organization of the Oil Producing Countries (OPEC) and Russia (all in all, ‘OPEC Plus’). Through this, its production was also reduced after the price came down significantly due to reduced demand for oil due to Corona.

These major producers of crude oil are trying to keep the market under control to increase its prices.

America tried to persuade OPEC member countries to increase oil production rapidly after the effect of Corona subsided. But these countries say that they will increase their production gradually and only in limited quantities.