Why is it in the News?

Moscow, Riyadh, and several other OPEC+ members announced extensions to oil production cuts first announced in 2023 as part of an agreement among oil producers to boost prices following economic uncertainty.

What is the OPEC+ Oil Alliance?

• OPEC+ is a coalition of oil-exporting nations that convenes regularly to determine the quantity of crude oil to offer on the global market.
• Origin: This alliance was established in late 2016 to formalize a framework for collaboration between OPEC and non-OPEC oil-producing nations on a consistent and sustainable basis.
• The primary objective of these nations is to collaborate on regulating crude oil production to stabilize the oil market.
• OPEC+ collectively controls approximately 40% of global oil supplies and holds over 80% of proven oil reserves.
• At its core, OPEC+ consists of OPEC member states, predominantly comprising nations from the Middle East and Africa.
• Membership: It includes OPEC member states along with Azerbaijan, Bahrain, Brunei, Kazakhstan, Russia, Mexico, Malaysia, South Sudan, Sudan, and Oman.

About the Organization of the Petroleum Exporting Countries (OPEC):

• OPEC, short for the Organization of the Petroleum Exporting Countries, is a permanent intergovernmental organization comprised of oil-exporting nations.

Mission:

• To coordinate and harmonize the petroleum policies of its member countries.
• To ensure the stability of oil prices in global oil markets, aiming to eliminate detrimental and unnecessary fluctuations.
• Formation: Founded in 1960 by the five original members - Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
• Presently, it consists of 13 member countries, which include Algeria, Angola, Congo, Equatorial Guinea, Gabon, Libya, Nigeria, and the United Arab Emirates.
• Headquarters: Located in Vienna, Austria.