Oil production was decreased with the ongoing breeze between Saudi and UAE. This caused sharp hike in the fuel rates. But now, OPEC and allied nations are agreed to boost the oil production gradually.
The 15 days dispute between two countries is finally compromised with Riyadh meeting to halfway demands form Abu Dhabi. This will boost the oil output 4,00,000 barrels per day. UAE’s quantity was raised to 3.5 million barrels per day. Though it is less than what UAE had demanded but is more than the previous baseline of 3.17 million.
The tensions were raised considering the dispute but the agreement between both the countries relieved the world. The possibility of inflationary oil price hike is minimized with this deal and oil prices may decrease soon.