OPEC+, the oil-producing coalition of 23 nations, decided to cut production by two million barrels a day.
Speaking in Vienna after a meeting, the representatives of the Organization of the Petroleum Exporting Countries said the decision aimed at stabilizing the oil price.
Crude oil, which has seen recent highs of $120, is currently trading at around $90.
Currently, petrol in India costs a little over Rs. 100 per liter in most major cities except for Delhi. As of October 6, a liter of petrol in New Delhi costs Rs. 96. Diesel price is hovering around Rs. 90 per liter.
Disappointed with the shortsighted decision – US
The White House called the OPEC decision ‘shortsighted’ and ‘disappointing.’
The US fears that high prices and increased demand for energy could help Russia, a top oil producer, find its way around the western sanctions.
Following Russia’s invasion of Ukraine, the US has heavily sanctioned Russia and provided Ukraine with military equipment.
And there is inflation.
After witnessing historic high retail gasoline prices, the Joe Biden government has only recently started claiming credit for bringing down the price at the pump. That could now change just ahead of the midterm elections.
All 435 seats of the house of representatives and 35 seats in the Senate will be up for grabs on November 8.
The officials said the US would release ten million barrels of crude oil from its strategic reserve to offset any spike in the fuel prices.