Business Standard

OPEC+ cuts oil output, gas prices soar: What's next for investors?

OPEC+ meeting: While analysts said the current output cut is insignificant to move the needle on oil prices, they cautioned that more output cuts may push oil prices higher, impacting India

Oil prices
Premium

As per government estimates, every $1 per barrel increase in crude oil prices impacts Indian current account deficit (CAD) by around $1 billion as the country meets over 85 per cent of its crude oil demand via imports.

Nikita Vashisht New Delhi
The Oil and Gas sector is going through a perfect storm with investors likely eyeing a cold winter. On Monday, OPEC and its allies (OPEC+), led by Russia, agreed to cut output by 100,000 barrels per day (bpd) for October.

This will amount to 0.1 per cent of global demand, and is aimed at bolstering prices that have slid on fears of an economic slowdown. It effectively reverses an increase in supply by a similar amount last month.

While analysts said the current output cut is insignificant to move the needle on oil prices, they cautioned that more output cuts

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in