Petrol prices are expected to climb once again as the OPEC+ group of oil-producing nations has announced its decision to maintain oil production at nine million barrels a day for the remainder of the year.
This move comes amid a backdrop of concerns over rising global inflation.
The Founder of the financial advisory organisation deVere Group, Nigel Green, has issued a stark warning regarding the implications of this decision.
Mr Green expressed his concerns as Saudi Arabia also confirmed its commitment to sustain a production cut of one million barrels a day until December, keeping its daily output at the lowest level in several years.
Nigel Green said: “OPEC+ is ramping up petrol price pain, triggering fresh and increasing concerns about rising global inflation – which was just beginning to ease – meaning central banks could possibly push higher-for-longer interest rates.
“Restricted oil supply leads to higher oil prices, which, in turn, can contribute to higher fuel prices for consumers and businesses, putting upward pressure on overall inflation.
“Higher energy costs also lead to increased production costs for companies, which are typically passed on to consumers in the form of higher prices for goods and services, again contributing to inflationary pressures.”
