Fuel prices hit 8-year high, OPEC meets


KATHMANDU: FEB. 2 – The Organization of Petroleum Exporting Countries (OPEC) has taken the required actions to address rising global oil prices.

OPEC Plus is expected to hold a virtual meeting with its partners on Wednesday to discuss critical decisions on oil production for consumers affected by rising fuel prices.

Oil prices are rising, putting pressure on OPEC and its partners to keep them under control. Goldman Sachs has said that it would not keep to its proposal to expand OPEC Plus production by 400,000 barrels per month, citing political pressure. According to Goldman Sachs, due to pressure from oil-importing countries, OPEC Plus may raise oil production.

US oil prices hit a post-2014 high of $88 a barrel on Monday due to Russia-Ukraine tensions. Similarly, the price of Brent crude oil has reached $90 per barrel.

Gasoline has also hit a national average price of $3.38 a gallon. According to reports, even if OPEC Plus takes the necessary actions, the rise in oil prices will be lessened.

According to Goldman Sachs, if OPEC Plus increases production, oil prices will fall by only $3 per barrel. The price will fall to less than $3 a barrel if Saudi Arabia agrees to increase oil production by 500,000 barrels bilaterally for three months, according to Goldman.