Fuel prices likely to surge following reduced global supply

Prices of petroleum products are likely to go up in the coming weeks due to a reduction in oil supply on the global market.

This is because the Organization of the Petroleum Exporting countries plus (OPEC plus), has announced a cut in production by two million barrels a day.

The slightest change in the price of crude oil has enormous effects on economies around the world.

Particularly for emerging economies like Ghana, when crude prices go up, the distress is felt almost across all aspects of the economy.

According to current estimates, the Organisation of Petroleum Exporting Countries (OPEC) controls about 80% of the world’s oil reserves, producing about 30% of the world’s consumption a day.

OPEC is made up of 23 countries but In 2016, when oil prices were particularly low, OPEC joined forces with 10 other oil producers to create OPEC.

This group of 23 oil-exporting countries meets regularly to decide how much crude oil should sell on the world market.

On October 5, 2022, members of  OPEC agreed to cut production by two million barrels per day.