Be ready! Price of petrol and diesel can go up again as Saudi cuts oil production

The price of petrol and diesel is all set to surge again. Saudi Arabia, the largest oil producing country, has announced that it will reduce the production and this has triggered the price rise in the international market, which will definitely affect domestic oil prices.

After announcing decline in oil production announcement by Saudi Arabia, the price of petrol and diesel is expected to increase in the international market. The expensive petrol and diesel will have a huge impact on the common people, as well as it will be danger bell for the BJP in the election year.

Speaking at a conference in Abu Dhabi, Saudi energy minister Khalid Al Falih said the kingdom's oil output would fall by 500,000 barrels per day in December.

Members of the Organization of Petroleum Exporting Countries (OPEC) and its allies could reduce supply further next year if needed, he added.

"The consensus among all members is that we need to do whatever it takes to balance the market," Al Falih said. "If that means trimming supply by a million [barrels per day], we will do it.

14 countries in OPEC, including Saudi Arabia, contribute about one-third of the world's crude oil production. Al-Falih said that any formal decision on reduction in oil production would be take in the meeting of oil ministers of OPEC and non-OPEC countries in Vienna in December this year.

Significantly, due to no major impact due to increase in supply and restriction on Iran by US, the cost of crude oil has come down by almost 20% in the last one month. However, after the announcement of Saudi Arabia, there was some improvement in prices on Monday, November 12.

Meanwhile, United Arab Emirates Energy Minister Suhail Mohamed Faraj Al Mazrouei also said that in order to balance the market, the producers need to make changes in the strategy.