Organisation of the Petroleum Exporting Countries (OPEC)
Why in News?
On April 28, 2026, the UAE announced it would exit OPEC and the wider OPEC+ alliance starting May 1, 2026. The move is driven by a desire to sell more oil independently and increase production to 5 million barrels per day (bpd) by 2027.
Facts and History
- Founded: Created in September 1960 at the Baghdad Conference.
- Founding Members: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
- Headquarters: Located in Vienna, Austria (moved from Geneva in 1965).
- OPEC+: Formed in 2016 to include 10 non-OPEC members like Russia, Kazakhstan, and Oman to better control market prices.
Recent Membership (Pre-May 1, 2026)
- 12 Members: Algeria, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, UAE (exiting), and Venezuela.
- Exits: The UAE joins a list of recent departures including Angola (2024), Ecuador (2020), and Qatar (2019).
Major Objectives & Functions
- Price Stability: Coordinating production levels to avoid wild price fluctuations.
- Supply Management: Ensuring a steady supply of petroleum to consuming nations.
- Investor Returns: Securing fair returns for those investing in the petroleum industry.
- Research: Publishing the Monthly Oil Market Report (MOMR) and Annual Statistical Bulletin for industry transparency.
Global Market Impact
- Reserves: OPEC nations hold approximately 80% of the world's proven crude oil reserves.
- Production Share: OPEC produces about 30% of world crude, while the wider OPEC+ group accounts for nearly 50% of global oil liquids production.
- Influence: By adjusting production targets, OPEC significantly impacts global fuel costs, transport markets, and national economies.
Download Pdf
