Q. Saudi Arabia and other OPEC+ oil producers have announced cut in the oil production. Which of the following will likely be the impact of cut in oil production?
1.It will lead to decrease in the oil prices.
2.It may impact West support to Ukraine against Russia.
3.It may not have a greater impact on India.
Select the correct option using the code given below:

[A] 1 and 2 only

[B] 2 only

[C] 2 and 3 only

[D] 3 only

Answer: C
Notes:

Explanation – A cut in the oil production – will increase prices of the oil globally, may impact West support to Ukraine against Russia because West would need to spend more money in the oil. The cut will not have much impact on India because it has substantially shifted its import source from traditional source to Russia. This provides India with some insulation against the decision taken by OPEC+.

Source: The Times of India