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OPEC
Context:
OPEC Plus, has decided to continue with significant reductions in their oil production levels until the end of 2025.
More on News:
- The agreement aims to bolster oil prices by maintaining production restraints, while also addressing the divergent interests of member countries.
- The agreement is expected to prolong the supply cuts, which could lead to higher oil prices and a drawdown of oil stocks in the second half of 2024.
About the Organization of the Petroleum Exporting Countries (OPEC):
- Objective:
- To coordinate and unify petroleum policies among Member Countries, to secure fair and stable prices for petroleum producers.
- Efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.
- OPEC is a permanent, intergovernmental Organisation, created at the Baghdad Conference in 1960.
- Headquarters: Vienna, Austria.
- Members: 12 counties – Algeria, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates, and Venezuela.
- Who can Join?
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- Any country with a substantial net export of crude petroleum, which has fundamentally similar interests to those of Member Countries, may become a Full Member of the Organisation.
- If accepted by a majority of three-fourths of Full Members, including the concurring votes of all Founder Members (Iran, Iraq, Saudi Arabia, Venezuela and Kuwait).
About Organisation of the Petroleum Exporting Countries plus (OPEC+):
- OPEC Plus, known as the OPEC and non-OPEC countries is an intergovernmental organisation that aims to enhance cooperation and foster inclusivity in the oil market.
- OPEC holds around 80.4% of the world’s proven oil reserves, while the set of 11 non-OPEC nations represents 9.7% of proven oil reserves.
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It comprises OPEC countries plus Azerbaijan, Bahrain, Brunei, Kazakhstan, Russia, Mexico, Malaysia, South Sudan, Sudan, and Oman, Equatorial Guinea.
