OPEC+

• IAS NEXT, Lucknow
• 22, Apr 2022

Reference News:-

Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman gave a “positive assessment” to their cooperation on the OPEC+ producers group to stabilize the world oil market. 

What’s the issue?

Saudi Arabia and other major Persian Gulf oil producers have so far resisted U.S. calls to increase output as prices have surged amid the crisis in Ukraine and concerns about possible sanctions on Russian exports. So, measures such as these are necessary to set things right.

What is the Opec+?

• Opec+ refers to the alliance of crude producers, who have been undertaking corrections in supply in the oil markets since 2017.
• OPEC plus countries include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.

What is OPEC?

1. The Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq, with the signing of an agreement in September 1960 by five countries namely Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They were to become the Founder Members of the Organization.
2. OPEC is a permanent, intergovernmental organization.
3. OPEC’s objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.
4. It is headquartered in Vienna, Austria.
5. OPEC membership is open to any country that is a substantial exporter of oil and which shares the ideals of the organization.