OPEC

Why in news?

• Oil prices rose over 2% on Monday, reversing an early fall to multi-year lows, as hopes of a deeper cut in output by OPEC and stimulus from central banks countered worries about damage to demand from the COVID-19 outbreak.

About OPEC

• The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of 14 nations, founded on 14 September 1960 in Baghdad by the first five members (Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela), and headquartered since 1965 in Vienna, Austria.

• As of September 2018, the 14 member countries accounted for an estimated 44 percent of global oil production and 81.5 percent of the world's "proven" oil reserves, giving OPEC a major influence on global oil prices.

• The stated mission of the organization is to "coordinate and unify the petroleum policies of its member countries and ensure the stabilization of oil markets, in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers, and a fair return on capital for those investing in the petroleum industry."

• The organization is also a significant provider of information about the international oil market.

• The current OPEC members are the following: Algeria, Angola, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, the Republic of the Congo, Saudi Arabia (the de facto leader), the United Arab Emirates and Venezuela.

• Ecuador, Indonesia and Qatar are former members.

Prelims Question

Q.Which of the following countries are members of the Organization of the Petroleum Exporting Countries (OPEC)?
1. Indonesia
2. Angola
3. Iran
Select the correct answer using the code given below:
a. 1 and 2 only
b. 2 and 3 only
c. 3 only
d. 1,2 and 3

Answer to the Prelims Question