OPEC+'s decision to hike supply starts a worldwide oil and gas price war that reaches markets, producers and leading oil importers such as India.

OPEC+ has now said that 411,000 more barrels per day will be added to the market from June, making up almost half of the 2.2 million voluntary cut they made in January. This is the third increase in a row, pushing Brent crude prices down to $60.23 before they recovered to reach $65.

The oil and gas alliance’s main producer, Saudi Arabia, is now shifting its policy. Due to excessive output from Iraq and the UAE, Riyadh is doubling production once more to push members who do not adhere to the agreement. In 1986, 1998, 2014 and 2020, this was the route chosen when OPEC wanted to regain supply influence, though it risked falling prices.

However, the oil and gas market today is spread among a number of players. Growing output from shale, the entrance of Brazil and Guyana and dimmer globa

l demand add challenges for Saudi Arabia. The International Energy Agency predicts that demand will rise only by 0.73 percent in 2025.

With oil and gas prices going down, India, as the third-biggest crude importer, has an opportunity to save in the short run. Just one dollar less for every barrel bought saves the country $1.5 billion each year. Reduced remittances, falling refinery margins and struggling trade deals with oil-exporting countries may happen as side effects.

This current oil and gas conflict might avoid bullets, but it could still have big economic repercussions.