Petrol price rise warning after Opec oil output cut

Some of the world’s top oil-producing countries have agreed to cut the amount they export in a decision expected to raise petrol prices around the world.

Members of Opec+ – a group that includes Saudi Arabia and Russia – said they would slash production by two million barrels per day.

The group said it wanted to stabilise prices, which have fallen in recent months as the world economy slows.

But the decision raised fears that prices for motorists will climb.

Expectations that countries were planning to pump less had already pushed oil prices higher this week. The price of a barrel of Brent crude jumped another almost 2% to more than $93 (£82) a barrel on Wednesday.

A spokesman for the RAC motoring group said the reduction announced on Wednesday would “inevitably” lead to higher oil prices, forcing up the wholesale cost of fuel.

“The question is when, and to what extent, retailers choose to pass these increased costs on at their forecourts,” spokesman Simon Williams said.

The cut announced by the Organization of the Petroleum Exporting Countries (Opec) and allies marks the biggest reduction by the group since the height of the pandemic in 2020.

-BBC

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