OPEC+ to become alliance
The Organization for the Petroleum Exporting Countries and its allies (OPEC+) have decided to create a formal body - an alliance.
The objectives of the alliance are listed as setting up “an intergovernmental platform to facilitate dialogue” and “further strengthen the collaboration in the formulation of policies aimed at promoting oil market stability”.
The objectives are due to be achieved by promoting a better understanding among its members of energy market fundamentals as well as “permanent dialogue among oil producing countries”, according to the document.
The idea of an organization of OPEC and non-OPEC countries has been mooted since joint efforts to stabilise oil prices have come to fruition.
The draft document also foresees ministerial meetings twice a year and regular encounters of technical experts.
The Wall Street Journal, citing OPEC officials, reported earlier that some nations, in particular Iran, worries that Russia and Saudi Arabia would concentrate decision-making in their hands, which are the second and third biggest oil producers, respectively.
OPEC now includes Algeria, Angola, Congo, Ecuador, Equatorial Guinea, Gabon, Iraq, Iran, Kuwait, Libya, Nigeria, Venezuela, the United Arab Emirates and Saudi Arabia (Libya, Iran and Venezuela are not currently involved in oil output cuts).
Non-OPEC oil producers that reducing oil production are Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia Sudan, South Sudan.