Context:
The recent pause in oil output by OPEC+ members have brought into news the leverage that this organisation holds in deciding the global oil prices.
UPSC Relevance:
Important organisations.
PYQ:
Other than Venezuela, which one among the following from South America is a member of OPEC?
(a) Argentina
(b) Bolivia
(c) Ecuador
(d) Brazil
About OPEC:
- The Organisation of the Petroleum Exporting Countries is a permanent, intergovernmental organization established at the Baghdad Conference in 1960.
- Founding members: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
- Member countries: Algeria, Congo, Gabon, Equatorial Guinea, Iraq, Iran, Kuwait, Libya, Nigeria, Saudi Arabia, UAE, and Venezuela. Gabon rejoined the group in 2016.
- Secretariat: Vienna, Austria.
- Objective: 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.
- It operates on the principle of unanimity, and one member, one vote.
- Significance: 80% of the world’s proven crude oil reserves are located in the grouping Member Countries.
- India sources about 70% of crude oil, 60% of its Liquefied Petroleum Gas (LPG), and 30% of its liquefied natural gas (LNG), and 45% of petroleum products demand from OPEC.
- Its Publication: World Oil Outlook
- The OPEC Fund for International Development is a multilateral development finance institution established in 1976. It is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively.
About OPEC+:
- Also known as the Vienna Group, it was created in 2016.
- It is a coalition of OPEC and 10 non-OPEC countries that export crude oil.
- Non-OPEC countries: Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.
- It pumps around 40% of the world’s crude oil.
- These countries signed a Declaration of Cooperation undertaking a production adjustment to achieve lasting stability in the oil market in the interest of oil producers and consumers.
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