OPEC agrees to extend output cuts into 2020 as demand falters

6 min read
  1. Organization of the Petroleum Exporting Countries(OPEC) has won the support of other major oil producing nations to extend a production cut in a bid to shore up prices at a time of decreasing demand.
  2. The 10 non-OPEC nations present at the meeting included countries such as Mexico, Bahrain, Kazakhstan and Russia among others.
  3. The United States which has become the world’s biggest oil producer and a significant exporter was not involved in the discussions and won’t be bound by any agreement.
  4. OPEC is an intergovernmental organisation of 14 nations,founded in 1960 in Baghdad by the first five members (Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela) and headquartered since 1965 in Vienna,Austria.
  5. The current OPEC members are the following: (a)Algeria (b)Angola, (c)Ecuador (d)Equatorial Guinea (e)Gabon (f)Iran (g)Iraq (h)Kuwait, (I)Libya (j)Nigeria (k)the Republic of the Congo (l)Saudi Arabia (j)United Arab Emirates and (k)Venezuela.Further,Indonesia and Qatar are former members.
  6. OPEC’s objective is to coordinate and unify petroleum policies among Member Countries,in order to secure fair and stable prices for petroleum producers and an efficient,economic and regular supply of petroleum to consuming nations and a fair return on capital to those investing in the industry.

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