Global News on Nostr: What is OPEC and how does it affect oil prices? ========== OPEC, founded in 1960, ...
What is OPEC and how does it affect oil prices?
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OPEC, founded in 1960, coordinates petroleum policies and aims to secure fair and stable oil prices. It includes 12 countries, mainly from the Middle East and Africa, accounting for about 30% of the world's oil. OPEC formed the OPEC+ coalition with 10 non-OPEC oil exporters, including Russia, in 2016. OPEC+ crude output represents about 41% of global oil production. The group's main objective is to regulate the supply of oil to the global market. OPEC decisions can affect global oil prices due to its large market share. When OPEC lowers supply in response to falling demand, oil prices tend to rise, and vice versa. OPEC estimates that its member countries hold about 80% of the world's proven oil reserves. The OPEC+ group is currently cutting output by 5.86 million barrels per day (bpd), equal to about 5.7% of global demand. The June 2 meeting could decide to extend voluntary cuts by several months. OPEC decisions have had significant effects on the global economy in the past, such as the 1973 Arab-Israeli War embargo and the COVID-19 pandemic. OPEC says its job is to regulate supply and demand rather than prices. The current OPEC members are Saudi Arabia, United Arab Emirates, Kuwait, Iraq, Iran, Algeria, Libya, Nigeria, Congo, Equatorial Guinea, Gabon, and Venezuela. Non-OPEC countries in the OPEC+ alliance are represented by Russia, Azerbaijan, Kazakhstan, Bahrain, Brunei, Malaysia, Mexico, Oman, South Sudan, and Sudan.
https://globalnews.ca/news/10522634/what-is-opec-and-how-does-it-affect-oil-prices/
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OPEC, founded in 1960, coordinates petroleum policies and aims to secure fair and stable oil prices. It includes 12 countries, mainly from the Middle East and Africa, accounting for about 30% of the world's oil. OPEC formed the OPEC+ coalition with 10 non-OPEC oil exporters, including Russia, in 2016. OPEC+ crude output represents about 41% of global oil production. The group's main objective is to regulate the supply of oil to the global market. OPEC decisions can affect global oil prices due to its large market share. When OPEC lowers supply in response to falling demand, oil prices tend to rise, and vice versa. OPEC estimates that its member countries hold about 80% of the world's proven oil reserves. The OPEC+ group is currently cutting output by 5.86 million barrels per day (bpd), equal to about 5.7% of global demand. The June 2 meeting could decide to extend voluntary cuts by several months. OPEC decisions have had significant effects on the global economy in the past, such as the 1973 Arab-Israeli War embargo and the COVID-19 pandemic. OPEC says its job is to regulate supply and demand rather than prices. The current OPEC members are Saudi Arabia, United Arab Emirates, Kuwait, Iraq, Iran, Algeria, Libya, Nigeria, Congo, Equatorial Guinea, Gabon, and Venezuela. Non-OPEC countries in the OPEC+ alliance are represented by Russia, Azerbaijan, Kazakhstan, Bahrain, Brunei, Malaysia, Mexico, Oman, South Sudan, and Sudan.
https://globalnews.ca/news/10522634/what-is-opec-and-how-does-it-affect-oil-prices/