Many people may have heard of OPEC and OPEC+. OPEC and OPEC+ meetings are highly regarded, as they are considered significant factors that impact the volatility of oil prices in the global market.
What Is OPEC?
OPEC, or the Organization of the Petroleum Exporting Countries, is an international organization comprised of oil-producing countries for the purpose of exporting. Its headquarters is located in Vienna, Austria. This organization sets policies for oil cooperation, maintains standards for fair oil prices, and promotes economic and technical cooperation among its 13 member countries, which are as follows:
1. United Arab Emirates
2. Venezuela
3. Algeria
4. Angola
5. Congo
6. Equatorial Guinea
7. Iran
8. Iraq
9. Kuwait
10. Libya
11. Nigeria
12. Gabon
13. Saudi Arabia
The Objective of OPEC
The objectives of OPEC are as follows:
1. Maintaining oil price stability to avoid excessive fluctuations.
2. Coordinating and harmonizing policies among member countries to uphold the sovereignty of oil for the efficiency of the oil market.
What Is OPEC+?
OPEC+ is a group of countries that also export oil, but are not part of the OPEC group, which consists of 10 countries as follows:
1. Azerbaijan
2. Bahrain
3. Brunei
4. Kazakhstan
5. Malaysia
6. Mexico
7. Oman
8. Russia
9. South Sudan
10. Sudan
Why Does OPEC+ Have More Influence Than OPEC?
OPEC+ consists of countries that have a significant impact on the global economy, such as Russia, Mexico, and Kazakhstan. OPEC+ controls around 55% of global oil production, while OPEC alone controls about 35%. This makes OPEC+ more influential on the global economy than OPEC's member countries.
Conclusion
As previously stated, OPEC is a gathering of 13 countries that produce oil for international exports, while OPEC+ comprises 10 countries that are not part of OPEC but have a greater influence on the oil supply. Nevertheless, both OPEC and OPEC+ have a significant impact on global oil prices. Therefore, tracking the outcomes of OPEC+ meetings is crucial for traders, as it enables them to analyze the direction of oil prices.
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Updated
1 year ago
(Apr 20, 2023 17:25)
