By Vivek Dubey
CNBC-TV18.com
Published Nov 21, 2023
OPEC+ will meet in Vienna, Austria, on Nov. 26 to discuss their joint output policy.
OPEC was founded in 1960 by Iraq, Iran, Kuwait, Saudi Arabia and Venezuela.
Current members of OPEC are: Saudi Arabia, UAE, Kuwait, Iraq, Iran, Algeria, Angola, Libya, Nigeria, Congo, Equatorial Guinea, Gabon and Venezuela.
Non-OPEC countries in the global alliance of OPEC+ are represented by Russia, Azerbaijan, Kazakhstan, Bahrain, Brunei, Malaysia, Mexico, Oman, South Sudan and Sudan.
OPEC countries produce around 30% of the world’s oil.
OPEC’s influence has faced challenges and internal divisions.
OPEC+ coalition was formed with 10 non-OPEC oil-exporting nations, including Russia, in 2016.
OPEC+ regulates the supply of oil to the world market, representing around 40% of world oil production.
OPEC’s decisions can affect global oil prices as its exports make up around 60% of global petroleum trade.
Oil prices tend to rise when OPEC lowers supply and fall when it decides to supply more oil.
Saudi Arabia pledged to make a deep cut of 1 million bpd to its output in July.
Oil prices slumped by about 5% to a four-month low on Nov. 16.
OPEC’s production cut decisions have had significant effects on the global economy.
The 1973 oil embargo brought the United States and other countries to the brink of a global recession.
OPEC+ slashed oil production by 10 million barrels a day during COVID-19 lockdowns.