OPEC agreed to cut production resulting in soaring price of crude

OPEC and Russia have agreed to cut oil production for the first time in eight years, aiming to boost prices. This decision has led to a 9% increase in Brent crude oil prices, raising concerns about higher fuel costs for consumers. While the production cut is expected to tighten the market, its impact on the oil industry and consumer budgets is mixed. The RAC notes a short-term effect on fuel prices, but a fuel duty freeze offers some relief. Market variables like exchange rates and geopolitical events, such as Brexit and Trump's presidency, add uncertainty to future oil prices.

What was the primary goal of OPEC's recent announcement?

• To eliminate oil taxes

• To increase oil production

• To prop up oil prices

• To decrease oil prices

Which non-OPEC country agreed to cut its oil production?

• Russia

• United States

• Saudi Arabia

• Canada

How might the production cuts affect consumers at the pump?

• Fuel prices will remain stable

• Fuel prices will be unaffected

• Fuel prices may increase

• Fuel prices may decrease

What is one factor, besides oil prices, that influences what consumers pay at the pump?

• Weather conditions

• Sterling and dollar exchange rate

• Local government policies

• Global stock market trends

What historical strategy did Saudi Arabia use to influence the oil market?

• Investing in renewable energy

• Increasing oil taxes

• Reducing oil exports

• Pushing shale producers out of the market