Why this matters now
OPEC is tested for: founded BAGHDAD CONFERENCE 14 SEPT 1960 by Iran, Iraq, Kuwait, Saudi Arabia, Venezuela (5 founders); HQ Geneva 1961-65 → Vienna since 1 Sept 1965; 12 MEMBERS as of 2024: 5 founders + Algeria (1969) + Nigeria (1971) + Libya (1962) + UAE (1967) + Iraq (founder) + Gabon (re-joined 2016) + Equatorial Guinea (2017) + Congo Republic (2018); recent exits: Angola left 1 Jan 2024, Qatar left 2019, Indonesia suspended 2016; OPEC+ formed 2016 by Declaration of Cooperation; adds Russia + Azerbaijan + Bahrain + Brunei + Kazakhstan + Malaysia + Mexico + Oman + South Sudan + Sudan; Sec-Gen Haitham Al-Ghais (Kuwait, 2022-); OPEC’s oil price band 2000 ($22-28 target); 2014-16 collapse price war with US shale; 2020 COVID historic -9.7 mbpd cut; OPEC+ JMMC Joint Ministerial Monitoring Committee meets monthly.
OPEC + OPEC+ members
| Group | Members |
|---|---|
| OPEC (12) | Saudi Arabia, Iran, Iraq, Kuwait, Venezuela (5 founders); UAE, Libya, Algeria, Nigeria, Gabon, Equatorial Guinea, Congo Republic. |
| OPEC+ (additional 10) | Russia, Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, South Sudan, Sudan. |
| Recent exits | Indonesia (suspended 2016 net importer), Ecuador (2020), Qatar (2019), Angola (1 Jan 2024 quota dispute). |
Combined OPEC+ controls ~50% world oil output + ~90% proven reserves.
India & OPEC
- India is the world’s 3rd-largest oil consumer + importer (5 mbpd 2024).
- ~85% crude import dependency.
- OPEC+ supplies ~50% of India’s crude; major source Saudi Arabia + Iraq + UAE.
- India publicly critical of OPEC+ output cuts (price-hikes affect India).
- Shift to Russian crude post Feb 2022 — Russia became India’s #1 supplier; discounted under G7 $60 price cap (Dec 2022).
- Strategic Petroleum Reserves at Visakhapatnam + Mangalore + Padur; second phase Chandikhol + Padur Stage-II being planned.
OPEC vs OPEC+ — key distinction
- OPEC (1960): 12 cartel members; meets at Vienna; Sec-Gen + Conference; OPEC Statute.
- OPEC+ (2016): NOT a formal cartel — cooperation framework. Declaration of Cooperation (DoC) 10 Dec 2016 Vienna; ad-hoc voluntary production-coordination by OPEC+ ministers + JMMC.
- Saudi Arabia + Russia are the de facto leaders of OPEC+ (“G2 of oil”).
- Decisions: production quotas, OPEC+ JMMC monitors monthly.
UPSC angle
Know OPEC Organization of the Petroleum Exporting Countries — founded BAGHDAD CONFERENCE 14 SEPT 1960 by 5 founders IRAN IRAQ KUWAIT SAUDI ARABIA VENEZUELA; HQ Geneva 1961-65 then VIENNA SINCE 1 SEPT 1965; 12 MEMBERS as of 2024: 5 founders + UAE 1967 + Libya 1962 + Algeria 1969 + Nigeria 1971 + Gabon re-joined 2016 + Equatorial Guinea 2017 + CONGO REPUBLIC 2018; RECENT EXITS Angola left 1 JAN 2024 quota dispute; Qatar left 2019; Indonesia suspended 2016 net importer; Ecuador 2020; OPEC+ FORMED 10 DEC 2016 VIENNA DECLARATION OF COOPERATION adds RUSSIA + AZERBAIJAN + BAHRAIN + BRUNEI + KAZAKHSTAN + MALAYSIA + MEXICO + OMAN + S SUDAN + SUDAN; SEC-GEN HAITHAM AL-GHAIS Kuwait 2022-; OPEC controls ~40% world oil + ~80% proven reserves; OPEC+ ~50% output + ~90% reserves; OPEC’s price band 2000 $22-28 target; 2014-16 collapse price war US shale; 2020 COVID historic -9.7 mbpd cut; OPEC+ JMMC Joint Ministerial Monitoring Committee monthly; SAUDI ARABIA + RUSSIA G2 of oil de facto OPEC+ leaders; INDIA 3rd-LARGEST OIL CONSUMER + IMPORTER 5 mbpd 2024 ~85% import dependency; OPEC+ supplies ~50% India’s crude major sources Saudi Iraq UAE; SHIFT TO RUSSIAN CRUDE post Feb 2022 Russia became #1 supplier discounted under G7 $60 price cap Dec 2022; SPR India at Visakhapatnam + Mangalore + Padur; second phase Chandikhol + Padur Stage-II planned.
Frequently asked questions
When and where was OPEC founded?
At the Baghdad Conference on 14 September 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
Where is OPEC headquartered?
Vienna, Austria — since 1 September 1965 (Geneva 1961-65).
What is the difference between OPEC and OPEC+?
OPEC (1960) is a 12-member formal cartel. OPEC+ (2016 Declaration of Cooperation) is a voluntary coordination framework adding 10 non-OPEC producers led by Russia. OPEC+ collectively controls ~50% world oil output.
Which country left OPEC most recently?
Angola left on 1 January 2024 after a quota dispute. Qatar left in 2019, Indonesia’s membership was suspended in 2016 (it became a net importer).