Organisation of the Petroleum Exporting Countries (OPEC)

Organisation of the Petroleum Exporting Countries Latest News

The United Arab Emirates has announced it will exit the Organisation of the Petroleum Exporting Countries and the broader OPEC+ alliance, with the decision taking effect from May 1, 2026.

About Organisation of the Petroleum Exporting Countries

• It is a permanent intergovernmental organization of oil-exporting countries.
• It was established in 1960 by the five founding members Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. 
• Objective: Its primary objective is to stabilize global oil markets and ensure fair prices for producers along with a steady supply for consumers.
• Member countries: Currently, it has 12 members, including Algeria, Congo, Equatorial Guinea, Gabon, Libya, Nigeria, and the United Arab Emirates (Decided to quit from May 1 2026).
• Angola withdrew its membership effective 1 January 2024.
• Headquarters: Vienna, Austria.
• OPEC members collectively hold more than 75–80% of the world’s proven crude oil reserves.
• The organization produces around 35–40% of the world’s total crude oil supply.
• OPEC plays a crucial role in influencing global oil prices by adjusting production levels.

What is OPEC+?

• It is an extension of the Organization of the Petroleum Exporting Countries formed in 2016.
• It consists of 22 oil-exporting countries which meet regularly to decide how much crude oil to sell on the world market.
• Members of OPEC+: It comprises 12 OPEC countries plus Azerbaijan, Bahrain, Brunei, Kazakhstan, Russia, Mexico, Malaysia, South Sudan, Sudan, and Oman.
• These nations aim to work together on adjusting crude oil production to bring stability to the oil market.

Source: News On Air

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