A big drop in the price of crude oil can be seen soon in the international market. The major reason for this is believed to be Iran’s possible return to OPEC, which is currently under sanctions by the US. By the way, the visit of Haitham Al Ghais, Secretary General of OPEC, the crude oil producing organization, to Iran is being considered important in many ways. There are speculations that sanctions may be lifted from Iran soon. The effect of which will be seen in the price of crude oil and its benefits will also be seen in India.
OPEC gave indications
OPEC Secretary-General Haitham Al Ghais said on Monday that the organization would welcome Iran’s return to the oil market after sanctions are lifted. Iran is an OPEC member, although its oil exports were banned by the US to stop Tehran’s nuclear program. Al Ghais, visiting Tehran for the first time, said that Iran has the ability to produce large quantities in a short time. He said that Iran is a member of the OPEC family and is also a responsible player in the oil market.
how much production cut
When asked about OPEC’s voluntary production cut and its impact on oil prices, Ghais said that in OPEC they do not target specific price levels. It is decided on global oil demand and supply. In early April, OPEC Plus announced an oil production cut of about 1.2 million barrels per day. After which the total oil production cut of OPEC Plus increased to 3.66 million barrels per day.
Crude oil will be cheaper
If there is Iran in the oil market, then there will be a lot of impact in the oil market. Coming to the Iranian oil market, the prices of crude oil will come down and the common people will get relief. At present, the price of Brent crude oil has come down below $77 per barrel. On the other hand, the price of WTI is at $ 72.43 per barrel. About a year and a quarter ago, the price of crude oil had crossed $130 per barrel. The reason for which was Russia Ukraine War.
How will India benefit
If Iran returns to the oil market again, the price of crude oil is expected to come down below $70 per barrel. Which will benefit India. The import bill on the country will be less and will help in reducing the price of petrol and diesel and will help a lot in controlling inflation in India. According to Anuj Gupta, Vice President of IIFL, India will have a big advantage of lifting sanctions from Iran. There is also a very good relationship between the two countries and there will be a lot of ease in imports.