OPEC+ - INTERNATIONAL RELATIONS

News: OPEC+ agrees to keep output levels unchanged

 

What's in the news?

       Major oil-producing countries led by Saudi Arabia and Russia agreed on December 4 to maintain their current output levels in a climate of uncertainty and ahead of fresh sanctions against Moscow coming into force next week.

 

Key takeaways:

       The representatives of the thirteen members of the Organization of the Petroleum Exporting Countries (OPEC) led by Riyadh, and their 10 allies headed by Moscow, decided to stick to their course agreed in October of a production cut of two million barrels per day until the end of 2023.

       OPEC+ described its October decision to cut as one "which was purely driven by market considerations", adding that it had been "the necessary and the right course of action towards stabilizing global oil markets", a statement said.

       The next OPEC+ ministerial meeting is scheduled for 4 June 2023.

       But the alliance said it was ready to "meet at any time and take immediate additional measures" to address market developments and support the oil market if necessary.

 

OPEC:

       The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental organization.

       It was created at the Baghdad Conference held in Iraq in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.

       It initially had its headquarters in Geneva, Switzerland which was then moved to Vienna, Austria in 1965.

       It accounts for an estimated 44 percent of global oil production and 81.5 percent of the world’s “proven” oil reserves.

       Members - Currently, the Organization has a total of 13 Member Countries - Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates, and Venezuela.

 

Objectives:

       Coordinate and unify petroleum policies among member countries.

       In order to secure fair and stable prices for petroleum producers.

       The efficient, economic and regular supply of petroleum to consuming nations.

       A fair return on capital to those investing in the industry.

 

OPEC+:

       The non-OPEC countries which export crude oil along with the 14 OPECs are termed as OPEC plus countries.

       OPEC plus countries include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.

       Saudi and Russia, both have been at the heart of a three-year alliance of oil producers known as OPEC Plus, which now includes 11 OPEC members and 10 non-OPEC nations that aims to shore up oil prices with production cuts.