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Sketchy deal: On OPEC oil output boost
As Saudi Arabia drives an OPEC agreement to increase oil output, the real impact is unclear
When it comes to crude oil prices, politics dwarfs(बौने ) everything else. The Organization of the Petroleum Exporting Countries (OPEC) on Friday agreed to increase (वृद्धि/विस्तार) its daily output to address the problem of rising(उभरता हुआ/चढ़ाव) crude oil prices. Saudi Arabia’s Energy Minister Khalid al Falih announced(घोषणा करना/घोषित करना) that the cartel’s output would be increased by about a million barrels a day beginning in July. The official statement released by the group, however, failed to mention(उल्लेख/ज़िक्र करना) any solid numbers regarding(विषय में) the planned increase in production(उत्पादन ). It simply stated that OPEC countries would “strive(प्रयास करना)” to adjust production levels in order to conform to the terms(शर्तों /मामले) of the production cut deal reached in 2016. Unsurprisingly, in the absence(अनुपस्थिति/कमी) of any clear intent(प्रयोजन/इच्छा) on the part of OPEC to guide prices lower, the price of the benchmark WTI crude increased by as much as 5% after Friday’s announcement of a production increase. OPEC members had in late 2016, it is worth(क़ीमत/श्रेय) noting, agreed to ahistoric(ऐतिहासिक) deal to cut output by 1.2 million barrels a day in order to end a supply glut(भरमार/बहुलता) and raise the price of oil. Since then, the cartel(उत्पादक संघ) has in fact managed to overshoot its production cut target(लक्ष्य) following unexpected outages in countries such as Venezuela and Libya, contributing(योगदान) to the steep rise in oil prices. In May, for instance(उदाहरण के लिए,) , OPEC overshot its production cut target by 624,000 barrels a day. The lack of any clear commitment(वायदा/प्रतिबद्धता) from OPEC to raise production suggests that the threat(आशंका/ख़तरा) of a supply shock still looms(गिरावट/धुंधला दिखाई देना) over the global economy. But, for now, the deal allows stakeholders in the energy market to save face.
The pressure on Saudi Arabia, the de facto leader of OPEC, to be seen as doing something to tackle rising oil prices was clear, going into the meeting on Friday. U.S. President Donald Trump has been vocal(मौखिक/स्वर) in recent months about the need to bring down rising oil prices that threaten(धमकाना/धमकी देना) to put the global economy under stress. Other oil-importing economies, especially emerging(उभरना/प्रकट होना) markets such as India that have been affected(प्रभावित/दिखावटी) by the rising cost of oil imports, have also been exerting pressure(दबाव डालना). The present deal could help the Saudis appease(मनाना/शांत करना) major oil consumers to some extent(विस्तार-क्षेत्र/मात्रा/प्रभाव) . Meanwhile, Iran, which has been opposed(सम्मुख-स्थित/विरोध का/) to raising OPEC output as it would lower prices, is set to suffer a marginal(मामूली ) loss as it lacks (अभाव/चाहना) spare(अतिरिक्त ) capacity to ramp up(बढ़ाना) production. This works in favour of its rival(प्रतिद्वंद्वी/विरोधी) , Saudi Arabia, which can recover from the impact(प्रभाव/असर) of lower prices by capturing market share. The deal, however, still allows Iran to save face by projecting the proposed output increase simply as a return to the original OPEC agreementframed(निर्माण करना) in 2016. Whether all this politicking will bring a stable(स्थिर/मज़बूत) reduction(छंटनी/कमी) in global oil prices remains to be seen.
Important Vocabulary
1.Dwarfs(बौने )
Synonyms: baby, diminutive, low, petite, pocket
Antonyms: big, huge, large, tall, giant
2.Strive(प्रयास करना)
Synonyms: aim, endeavor, go all out, seek, tackle, assay
Antonyms: neglect, agree, discourage, dissuade, idle
3.Worth(क़ीमत/श्रेय)
Synonyms: account, aid, benefit, cost, credit
Antonyms: hindrance, evil, hurt, imperfection, injury
4.Glut(भरमार/बहुलता)
Synonyms: oversupply, saturation, surplus, excess, nimiety
Antonyms: lack, need, want, insufficiency
5.Commitment(वायदा/प्रतिबद्धता)
Synonyms: engagement, guarantee, need, pledge, promise
Antonyms: break, breach, irresponsibility, broken promise, denial
6.Threat(आशंका/ख़तरा)
Synonyms: blackmail, hazard, intimidation, menace, peril
Anytonyms: certainty, safety, surety
7.Vocal(मौखिक/स्वर)
Synonyms: articulate, choral, operatic, verbal, lyric
Antonyms: introverted, modest, quiet, shy, written
8.Appease(मनाना/शांत करना)
Synonyms: allay, alleviate, assuage, blunt, calm
Antonyms: aggravate, agitate, incite, increase, intensify
9.Spare(अतिरिक्त )
Synonyms: unoccupied, unused, backup, emergency, free
Anytonyms: fat, necessary, thick
10.Marginal(मामूली )
Synonyms: insignificant, minimal, minor, negligible, bordering, low
Antonyms: important, major, significant, central, core
11.Framed(निर्माण करना)
Synonyms: bordered, enclosed, mounted, wrapped, clasped
