Enrich Your Learning:
Why in news?
A new term, OPEC+, was recently emerged in the crude oil price analysis. The OPEC and its new crude-producing allies make up OPEC+, with the “+” consisting of ten additional oil-producing nations, the largest three being Russia, Mexico and Kazakhstan.
Organization of the Petroleum Exporting Countries (OPEC):
- The Organization of the Petroleum Exporting Countries (OPEC) is a group of oil-producing nations that was first established in Baghdad, Iraq, in 1961.
- It is headquartered at Vienna.
- OPEC was a major player in the shift towards state control over natural resources. It has a massive impact on oil production and pricearound the world.
- OPEC membershipis open to any country that is a substantial exporter of oil and which shares the ideals of the organization.
- Before OPEC was formed, the oil market was dominated by a group of multinational companies. The formation of OPEC helped ensure that private companies could not unilaterally cut prices throughout the world.
- OPEC Fund for International Development (OFID), established as a multilateral development finance institution is aimed at promoting cooperation between Member States of OPEC and other developing countries.
- Coordinate and unify the petroleum policies of its Member Countries and
- Ensure the stabilization of oil markets in order to secure an efficient and regular supply of petroleum to consumers and a steady income to producers
- Iran, Iraq, Kuwait, Saudi Arabia and Venezuelaare the founding Members of the Organization.
- Today, OPEC is comprised of 14 members. They are:
- Iran, Iraq, Kuwait, Qatar, Saudi Arabia, United Arab Emirates(six in the Middle East)
- Algeria, Angola, Gabon, Libya, Nigeria, Congo(six in Africa)
- Ecuadorand Venezuela (two in South America)