Islamabad, October 17, 2022 (PPI-OT):The Pakistan Economy Watch (PEW) on Sunday said Opec+ decision to cut oil production by two million barrels per day will push the world into another serious crisis. The decision will speed up economic downturn in hundreds of countries and hit almost everyone living on this planet, it said. The move will badly hit the US and EU and help Russia earn more which is unacceptable for the western block which is far from victory in the conflict between Russia and Ukraine, said Dr. Murtaza Mughal, President PEW.

In a statement issued here today, he said that the oil-exporting countries should not reduce production to push the world into a new crisis. The oil importing countries are affected by the high oil prices but the oil exporting countries have also earned more than one and a half trillion dollars but their greed knows no limits.

He said that the oil exporting countries have become rich due to the rising oil prices and now pushing up the price will accelerate the global recession which will reduce the demand for oil. The Saudis said their decision was based solely on economic considerations and was not politically motivated against the United States but in Washington, the cuts were widely seen as a political blow to President Biden ahead of a tough winter of economic challenges, and a month before midterm elections, he observed.

The decision has resulted in tensions between the US and the KSA which are being observed keenly by the market players. Dr. Murtaza Mughal said that OPEC+ should not take any such step before the agreement between the United States and Iran as oil demand has weakened worldwide, with OPEC, the US Energy Department, and the International Energy Agency all lowering forecasts for 2023 demand.

However, the IEA has said that OPEC’s move could worsen demand, saying that higher oil prices may prove the tipping point for a global economy already on the brink of recession. He noted that sanctions from Iran can be lifted at any time therefore Pakistan should be prepared to import oil and gas to meet the energy shortfall in the country, which is very important for increasing GDP and providing relief to the people.

For more information, contact:
President,
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671
Email: president@pakistaneconomywatch.com
Web: www.pakistaneconomywatch.com