THE OIL MAFIA, FT: SAUDI ARABIA

 Saudi Arabia has always been famous for their oil reserves, knowing the increasing requirement of oil they always tried to fulfill the demand around the globe and in that direction in September 1960 OPEC (Organization of the petroleum exporting countries) was formed which included countries having high oil reserves, later on in 2016 OPEC+ was formed which included top non-OPEC oil-exporting countries.

OPEC+ controls more than 50% of global oil supplies and about 90% of proven oil reserves and with that much of powers in their hands and surely dominate global economies and they do dominate by increasing their oil prices several times after covid pandemic in the first meeting itself all the OPEC+ agreed to cutoff the oil production 2 million barrels per day with the motive to create scarcity in market and gain maximum benefit from their reserves.

The reason that this decision was criticized was that after the pandemic most of the global economies were facing difficulties and this decision was like salt to their injury, Global leaders like America and U.K had faced difficulties, so it was expected that small countries like Sri Lanka had to deal with extra ordinarily and they failed. America is going to have November elections and considering that Joe Biden has constantly requesting Prince Mohammed Bin Salman about increasing the supply of oil as the natives of America are feed up of the inflation rate 10%, which resulted their GDP and it went to negative, not only America is facing problems but U.K is also on the verge of winters and the citizens are not able to buy necessary goods due to inflation it would be a disaster for U.K  in winters if the oil supplies are not increased. 

Considering the supply of oil not increased there would be problems in every part of world and this clearly shows dominance in global market and for that reason Saudi Arabia is considered as the Oil Mafia.