OPEC was established at a conference held in Baghdad September 10–14, 1960, and was formally constituted in January 1961 by five countries: Saudi Arabia, Iran, Iraq, Kuwait, and Venezuela. OPEC, in full Organization of the Petroleum Exporting Countries, multinational organization that was established to coordinate the petroleum policies of its members and to provide member states with technical and economic aid.
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Demystified Videos In Demystified, Britannica has all the answers to your burning questions.Britannica Classics Check out these retro videos from Encyclopedia Britannica’s archives.However, both reportedly aimed at causing a drop in oil prices in order to hit US shale producers, who have continued to benefit from OPEC production cuts by expanding their market share.For Russia, the formalization of the group helps expand Putin’s influence in the Middle East.For Saudi Arabia, turning what had been an ad hoc coalition into a formal group provides a hedge (protection) against future oil-market turbulence.This changed the regime’s priorities – from satisfying the needs of the general population to ensuring the sustainability of the Kremlin’s alliance with powerful tycoons, including that controlling oil production.Higher oil prices ensured the Kremlin’s financial capacity to lead a successful electoral campaign.When Russia concluded the Vienna Agreement in 2016, the Russian leadership believed that it would help prepare the country for the Russian presidential elections in March 2018.Saudi and Russia, both have been at the heart of a three-year alliance of oil producers known as OPEC Plus - which now includes 11 OPEC members and 10 non-OPEC nations - that aims to shore up oil prices with production cuts.OPEC plus countries include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.The non-OPEC countries which export crude oil along with the 14 OPECs are termed as OPEC plus countries.Today OPEC is a cartel that includes 14 nations, predominantly from the middle east whose sole responsibility is to control prices and moderate supply.OPEC membership is open to any country that is a substantial exporter of oil and which shares the ideals of the organization.It is headquartered in Vienna, Austria.
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It aims to manage the supply of oil in an effort to set the price of oil in the world market, in order to avoid fluctuations that might affect the economies of both producing and purchasing countries.It is a permanent, intergovernmental organization, created at the Baghdad Conference in 1960, by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.OPEC stands for Organization of the Petroleum Exporting Countries.
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Oil prices jumped by close to 10% for its biggest daily gain in almost six months after news of a highly effective vaccine against COVID-19 and Saudi Arabia’s assurance that an OPEC+ oil output deal could be adjusted to balance the market. From UPSC perspective, the following things are important :