Following the announcement by major oil producing blocs, fossil fuel prices have surged in the international markets.
The bad news is the upward trajectory of the fuel prices is estimated to have just begun, thus exacerbating the global economy dynamics already weathering the turmoil of the Ukraine war.
According to reports, the price of Brent crude is trading above US$84 a barrel after jumping by 5 percent.
Brent crude index jumped after Saudi Arabia, Iraq and the Gulf countries announced on Sunday to pare output by over a million barrels of oil a day.
On the other hand, Russia intends to continue with its oil production cut of half a million barrels per day to the end of the year.
Oil prices, which peaked after the outbreak of the Russia-Ukraine war, are now at levels seen before the start of the conflict.
Meanwhile, the US has been nudging producers to ramp up oil output to soften the global energy prices. In fact, the Biden administration is understood to be not amenable to the announcement of production cuts.
High energy and food prices have pushed up global inflation, with the central banks caught in the hawkish spiral of raising key interest rates to control runaway inflation.
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Besides, the fresh production cut is likely to help Russia expand its customer basket to sell crude oil to the Asian countries.