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What is the Opec+?

Topics Covered: Important International institutions, agencies and fora, their structure, mandate.

What is the Opec+?


Context:

Russia expects to support an increase in oil production by OPEC+, of another 500,000 barrels per day (bpd) from February at next month’s summit of the leading global oil producers.

Background:

Russia, other leading oil producers and the Organization of the Petroleum Exporting Countries, a group known as OPEC+, agreed to reduce output to support the global oil market as the COVID-19 pandemic has weakened fuel demand.

  • Since the agreement on a record global supply cut in April, OPEC+ has progressively reduced the cuts and is expected in January to release an extra 5,00,000 bpd into the market.

What is the Opec+?

  • Opec+ refers to the alliance of crude producers, who have been undertaking corrections in supply in the oil markets since 2017.
  • OPEC plus countries include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.

OPEC_1

InstaLinks:

Prelims Link:

  1. Founder members of OPEC.
  2. Top oil producers?
  3. India’s crude oil imports?
  4. Components and refining of crude oil.
  5. Crude oil storage facilities in India?
  6. Geographical location of OPEC members.
  7. Type of Crude oil produced by OPEC and non-OPEC members.
  8. What is OPEC+?

Mains Link:

How groups, such as OPEC, influence oil prices across the world? Discuss.

Sources: the Hindu.