1 / 10OPEC+ is a group that includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, such as Russia. They will convene in Vienna, Austria on June 4 to discuss their joint output policy. Here are some important details about OPEC+ and its role. (Image: Reuters)
2 / 10OPEC was established in 1960 in Baghdad by Iraq, Iran, Kuwait, Saudi Arabia, and Venezuela with the goal of coordinating petroleum policies and ensuring fair and stable prices. It now comprises 13 countries, mostly from the Middle East and Africa, which produce about 30% of the world’s oil. (Image: Reuters)
3 / 10OPEC’s influence has faced challenges over time, often leading to internal divisions. The global shift towards cleaner energy sources and away from fossil fuels could ultimately reduce its dominance. (Image: Shutterstock)
4 / 10In late 2016, OPEC formed the OPEC+ coalition with 10 major non-OPEC oil-exporting nations, including Russia. OPEC+ represents about 40% of world oil production and aims to regulate the supply of oil to the global market. Saudi Arabia and Russia are the leaders, each producing around 10 million barrels per day (bpd) of oil. (Image: Shutterstock)
5 / 10OPEC member states’ exports account for about 60% of global petroleum trade. In 2021, OPEC estimated that its member countries held more than 80% of the world’s proven oil reserves. Due to their large market share, OPEC’s decisions can impact global oil prices. Its members meet regularly to determine how much oil to sell on global markets. (Image: Shutterstock)
6 / 10When they reduce supply in response to falling demand, oil prices tend to rise. Prices tend to fall when the group decides to increase supply to the market. On April 2, OPEC+ agreed to deepen crude oil production cuts to 3.66 million barrels per day (bpd) or 3.7% of global demand until the end of 2023. This helped push up oil prices by about $9 a barrel to above $87 per barrel over the following days, but Brent prices have since lost those gains. (Image: Shutterstock)
7 / 10Some of OPEC’s production cut decisions have had significant impacts on the global economy. During the 1973 Arab-Israeli War, Arab members of OPEC imposed an embargo against the United States in retaliation for its decision to re-supply the Israeli military and other countries that supported Israel. The embargo banned petroleum exports to those nations and introduced cuts in oil production. (Image: Shutterstock)
8 / 10The oil embargo put pressure on an already strained US economy that had become dependent on imported oil. Oil prices soared, causing high fuel costs for consumers and fuel shortages in the United States. The embargo also brought the United States and other countries close to a global recession. (Image: Shutterstock)
9 / 10In 2020, during COVID-19 lockdowns around the world, crude oil prices slumped. In response, OPEC+ slashed oil production by 10 million barrels a day or around 10% of global production to try to bolster prices. (Image: Shutterstock)
10 / 10The current members of OPEC are: Saudi Arabia, United Arab Emirates, Kuwait, Iraq, Iran, Algeria, Angola, Libya, Nigeria, Congo, Equatorial Guinea, Gabon and Venezuela. Non-OPEC countries in the global alliance of OPEC+ include Russia, Azerbaijan, Kazakhstan, Bahrain, Brunei, Malaysia, Mexico, Oman, South Sudan and Sudan. (Image: Shutterstock)
