Recently, OPEC+ agreed in principle to maintain steady crude oil production despite rising political tensions among some member countries and growing geopolitical uncertainty across the world. The decision reflects the group’s effort to ensure stability in global oil markets and prevent sudden fluctuations in international crude oil prices.
About OPEC+
OPEC+ is an alliance of major oil-exporting nations that cooperate to regulate crude oil production and stabilize the global energy market. It was formed in 2016 as an extension of the Organization of the Petroleum Exporting Countries (OPEC).
The alliance was created because many important oil-producing countries outside OPEC, especially Russia, wanted to work together with OPEC members to manage global oil supply more effectively.
OPEC+ currently consists of 22 oil-exporting countries. These countries meet regularly to decide how much crude oil should be produced and supplied to the international market.
The main objective of OPEC+ is to maintain a balance between global oil demand and supply so that oil prices remain stable and do not fluctuate sharply.
Members of OPEC+
OPEC+ includes the 12 member countries of OPEC along with several non-OPEC oil-producing nations.
The additional countries in the alliance include:
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Azerbaijan
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Bahrain
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Brunei
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Kazakhstan
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Russia
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Mexico
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Malaysia
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South Sudan
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Sudan
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Oman
These countries work collectively to adjust crude oil production whenever required in order to maintain stability in the international oil market.
About OPEC
The Organization of the Petroleum Exporting Countries (OPEC) is a permanent intergovernmental organization of oil-exporting countries.
It was established in 1960 by five founding members:
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Iran
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Iraq
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Kuwait
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Saudi Arabia
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Venezuela
The organization was formed to coordinate petroleum policies among member countries and safeguard their economic interests.
At present, OPEC has 12 members, including:
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Algeria
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Congo
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Equatorial Guinea
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Gabon
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Libya
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Nigeria
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United Arab Emirates
Angola officially withdrew from OPEC on 1 January 2024.
Headquarters of OPEC
The headquarters of OPEC is located in Vienna, the capital city of Austria.
Importance of OPEC+
OPEC+ plays a very important role in the global economy because its member countries together account for a significant share of the world’s crude oil production and exports.
The decisions taken by OPEC+ directly affect:
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Global crude oil prices
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Petrol and diesel prices
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Inflation levels
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Energy security
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Economic growth of oil-importing and oil-exporting countries