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OPEC+ move to output cut
Why is it in news?
- The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, took the decision to continue with output cuts.
Details:
- The OPEC and OPEC+ agreed not to increase supply in April as they await a more substantial recovery in demand amid the COVID-19 pandemic.
- Crude prices rose after the announcement and are up 33% this year.
- Brent crude futures for May rose to $67.44 a barrel, and are on track for an almost 2% gain this week.
- India, the world’s third-biggest oil importer, said the decision by OPEC for output cuts, could threaten the consumption led-recovery in some countries.
- India imports about 84% of its oil and relies on West Asian supplies to meet over three-fifths of its demand.
About OPEC:
- The Organization of the Petroleum Exporting Countries (OPEC) is a group of world’s major oil-exporting nations.
- OPEC was founded in 1960 at the Baghdad Conference by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
- OPEC had 14 members, but Ecuador recently quit the group, leaving the group with 13 member nations.
- OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence. Later it moved to Vienna, Austria in 1965.
- OPEC+ alliance comprise of some oil producing countries along with traditional OPEC members. The plus alliance include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.
Source: The Hindu