Global Impact of OPEC's Oil Production Cut
Major oil importers like India, Japan, and South Korea will be the most affected if oil prices reach $100 per barrel, as some have predicted. The voluntary production cuts by OPEC and its allies are set to start in May and last until the end of 2023. Countries heavily reliant on oil imports, such as Japan and South Korea, will be hit the hardest. Emerging markets that do not have the foreign currency capability to support fuel imports, such as Argentina, Turkey, South Africa, and Pakistan, will also be negatively impacted. However, while $100 per barrel may be within the horizon, the higher price point may not stay for long.