OPEC (Organization of Petroleum Exporting Countries) | Institut MEDEA OPEC (Organization of Petroleum Exporting Countries) Ulamas OPEC (Organization of Petroleum Exporting Countries) The OPEC has been created in September 1960 during a Conference held in Bagdad by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela upon an Iraqi initiative. Today OPEC consists of 11 member countries. The aim of the organisation is to combine and coordinate members’oil production and export policies in order to safeguard their interests. Decisions referred to the OPEC Pricing Policy are taken during the regular meeetings of the national oil ministers of the member states. Since the early ’80s, the organisation started fixing quota agreements influencing the world oil supply and consequently the inflation rates, the currency exchange rates and the Trade Balances of the countries which are most dependent on imported oil.

The OPEC member states are the following : Algeria Angola Ecuador Indonesia (withdrew in 2008 when became for the first time a net importer of oil, expressing its desire, nonetheless, to re-enter the Organisation if it becomes once again a net exporting of oil) Iran United Arab Emirates Venezuela These countries account for 2/3 of the known deposits of crude oil (2/3 of which are located in the Middle East) whereas obviously Non OPEC Countries hold less then 1/4 of the total amount of the word known oil reserves. In 1996, OPEC Members represented 33.3% of the oil world production (including crude oil, natural gas liquids, refinery gain, etc…). At the end of 1999, OPEC Crude Oil production amounted to 26,507 b/d, in July 2000 OPEC supplied approx.28,172 b/d. The OPEC headquarters are located in Vienna (Austria) and the organization’s Secretary General is Mr.Abdallah Salem el-Badri, elected in January 2007. The organization has three main weak points: Its decisions require unanimity for adoption.

Its members do not always abide by the decisions which are taken. The Organization does not include all the major players in the Oil Market arena such as Angola, Bahrain, Brunei, the United Kingdom, Mexico, Norway, Oman, the United States, Russia and the former Soviet republics. In February 1999, after the steep decline in the oil market which led to a price of less than $ 10 a barrel OPEC oil ministers reached a new agreement in The Hague on 12 March 1999. The members of this meeting were : Saudi Arabia, Iran, Algeria, Venezuela and Mexico. This agreement which comprehended OPEC plus Mexico, Norway and Oman enacted further cuts of just 2 million barrels a day, on top of the 2.6 million million a day already agreed by OPEC in July 1998, with an implicit threat that Saudi Arabia could use its production muscle, if necessary, to keep the other producers in line until oil prices reaches $ 15 a barrel. Following unusually disciplined reductions in supply under the The Hague agreement, the oil price recovered rapidly and more than doubbled in six months time, approaching $ 24 by the middle of September 1999.

The market continues to show signs that the exporter group will continue to abide by this agreement by reducing total output at least till the expiry date of the agreement in March 2000. On 17 November, oil ministers of two of the biggest OPEC exporters – Saudi Arabia and Venezuela – and Mexico re-confirmed in Riyadh that the cuts would stay in place at least until the end of March 2000. Later on the same day, the barrel hit $ 25, a level last seen during the second Gulf War. This time obviously the oil producers have been able to slice their outputs because the March 1999 agreement has rapidly been very effective. On 22 November, crude oil leapt even further high, close to $ 26 when Irak started implementing a threat to halt its 2.2 million barrels a day of exports related to the UN « Oil for Food Resolution ». As a result, the average price in 1999 was finally over 18 $ a barrel.

Contrarily to expectations of many experts, the rise of the oil price continued in 2000, nearing 30 $ by the middle of February and 34$ in early September 2000. These increases in prices are mainly due to the higher oil demand induced by the higher growth of Asian Economies, a continuous expansion of the US Market, and a stagnation of the Non OPEC Countries’production caused by very small investment efforts done during the low prices period. Following intense pressure by the U.S., Saudi Arabia convinced most of the other OPEC members on March 28 to raise from April 1 their production by 6.5 % (1.7 millions b/d). This was intended to stabilize the barrel around 25$. Nevertheless, the price raised again after a while and was reaching 32 $ by mid-June 2000. On June 21, OPEC took the decision to raise again its production by 708,000 b/d from July 1.

As this decision turned out to have little effect, Saudi Arabia – which is the only OPEC member having a significant amount of spare production capacity – announced on July 3 that it could unilaterally release 500,000 b/p more if prices do not go down to $ 25. The rise of crude oil prices will boost the inflation everywhere. Concerning the European Union and the euro-zone, the inflation forecast for 2000 has been revised from 1.2 to 1.5%, and it is forseen that there will be a slight further acceleration in 2001, to 1.6% (figures given by the European Commission in November 1999). Higher oil prices will certainly push up inflation more in Europe than in the U.S. but the output loss will be significantly bigger in Japan than in Europe or the USA (due to the fact that Japan is more dependent on imported oil and exports less to OPEC countries than the EU).

The main reason why the US administration was so eager to obtain a substantial reduction of the price per barrel was that the gasoline price in the US was nearing 2 $ a gallon, a level which could be politically disastrous for the Democrat administration during a presidential campaign. In spite of the OPEC decisions, the price has gone over 2 $ a gallon in some parts of the US during summer 2000. At this very moment, within the Euro Zone, the industrial producer price index rose by 0.4% in June 2000 compared with a revised 0.7% increase for May 2000. In spite of the recent resolution/gesture of OPEC Members to raise the oil production by 3% i.e. 80,000 b/d (following the preveous quota enlargments of March 1,7 million b/d and 708,000 b/d in June 2000) gasoline prices keep growing in Europe leading to strikes and social discontent all over the Euro Zone (see Truckers strikes in Belgium, France and UK in September 2000).

The events of September 11, 2001, the invasion of Afghanistan in the same year, the Iraq war launched in 2003 whose consequences prevail today have caused an important surge in oil prices in recent years, pushing countries such as Indonesia to remove itself from the Organisation in a desperate effort to protect its national oil interests. Simultaneously, the OPEC has to confront the issue of declining global oil demand. OPEC OPEC The Organization of the Petroleum Exporting Countries (OPEC; pronounced /oʊ.pɛk/, oh -pek) is a cartel of twelve countries made up of Algeria , Angola , Ecuador , Iran , Iraq , Kuwait , Libya , Nigeria , Qatar , Saudi Arabia , the United Arab Emirates , and Venezuela . OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings among the oil ministers of its Member Countries. Indonesia withdrew its membership in OPEC in 2008 after it became a net importer of oil, but stated it would likely return if it became a net exporter in the world again. According to its statutes, one of the principal goals is the determination of the best means for safeguarding the cartel's interests, individually and collectively.

It also pursues ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations; giving due regard at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient and regular supply of petroleum to consuming nations, and a fair return on their capital to those investing in the petroleum industry. OPEC's influence on the market has been widely criticized, since it became effective in determining production and prices. Arab members of OPEC alarmed the developed world when they used the “oil weapon” during the Yom Kippur War by implementing oil embargoes and initiating the 1973 oil crisis. Although largely political explanations for the timing and extent of the OPEC price increases are also valid, from OPEC’s point of view, these changes were triggered largely by previous unilateral changes in the world financial system and the ensuing period of high inflation in both the developed and developing world.

This explanation encompasses OPEC actions both before and after the outbreak of hostilities in October 1973, and concludes that “OPEC countries were only “staying even” by dramatically raising the dollar price of oil.” OPEC's ability to control the price of oil has diminished somewhat since then, due to the subsequent discovery and development of large oil reserves in Alaska , the North Sea , Canada , the Gulf of Mexico , the opening up of Russia , and market modernization. OPEC nations still account for two-thirds of the world's oil reserves, and, as of April 2009, 33.3% of the world's oil production, affording them considerable control over the global market. The next largest group of producers, members of the OECD and the Post-Soviet states produced only 23.8% and 14.8%, respectively, of the world's total oil production. As early as 2003, concerns that OPEC members had little excess pumping capacity sparked speculation that their influence on crude oil prices would begin to slip.

History Venezuela was the first country to move towards the establishment of OPEC in the 1960s by approaching Iran, Gabon , United Kingdom , Kuwait and Saudi Arabia in 1949, suggesting that they exchange views and explore avenues for regular and closer communication among petroleum-producing nations. In 10-14 September 1960, at the initiative of the Venezuelan Energy and Mines minister Juan Pablo Pérez Alfonzo and the Saudi Arabian Energy and Mines minister Abdullah al-Tariki, the governments of Iraq, Iran, Kuwait, Saudi Arabia and Venezuela met in Baghdad to discuss ways to increase the price of the crude oil produced by their respective countries. OPEC was founded in Baghdad, triggered by a 1960 law instituted by American President Dwight Eisenhower that forced quotas on Venezuelan and Persian Gulf oil imports in favor of the Canadian and Mexican oil industries. Eisenhower cited national security, land access to energy supplies, at times of war. When this led to falling prices for oil in these regions, Venezuela's president Romulo Betancourt reacted by seeking an alliance with oil producing Arab nations as a preemptive strategy to maintain the continued autonomy and profitability of Venezuela's oil resources.

As a result, OPEC was founded to unify and coordinate members' petroleum policies. Original OPEC members include Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Between 1960 and 1975, the organization expanded to include Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), and Nigeria (1971). Ecuador and Gabon were members of OPEC, but Ecuador withdrew on December 31, 1992 because they were unwilling or unable to pay a $2 million membership fee and felt that they needed to produce more oil than they were allowed to under the OPEC quota. Similar concerns prompted Gabon to follow suit in January 1995 [ Angola joined on the first day of 2007. Norway and Russia have attended OPEC meetings as observers. Indicating that OPEC is not averse to further expansion, Mohammed Barkindo, OPEC's Secretary General, recently asked Sudan to join.

Iraq remains a member of OPEC, but Iraqi production has not been a part of any OPEC quota agreements since March 1998. In May 2008, Indonesia announced that it would leave OPEC when its membership expired at the end of that year, having become a net importer of oil and being unable to meet its production quota . A statement released by OPEC on 10 September 2008 confirmed Indonesia's withdrawal, noting that it "regretfully accepted the wish of Indonesia to suspend its full Membership in the Organization and recorded its hope that the Country would be in a position to rejoin the Organization in the not too distant future." End of Bretton Woods The United States unilaterally pulled out of the Bretton Woods Accord and took the US off the established Gold Exchange Standard on August 15, 1971. With that standard, only the value of the US dollar was pegged to the price of gold and all other currencies were pegged to the US dollar.

The change now allowed the dollar to "float", and shortly thereafter other industrialized nations followed suit with their respective currencies, also in anticipation of currency fluctuations as they stabilized, they increased their reserves (printing money) in amounts far greater than ever before. Attempts by the Group of Ten to stabilize the situation were generally ineffective. The result was a depreciation of the value of the US dollar, as well as other currencies, and increasing inflation pressures worldwide. Because the producer’s petroleum still was priced in dollars, it meant that they were receiving less real income for the same amount of oil production. OPEC was slow to readjust oil prices to reflect this depreciation; OPEC ministers had not developed the institutional mechanisms to update prices rapidly enough to keep up with changing market conditions, so their real incomes lagged for several years. Eventually, the OPEC cartel issued a joint communique stating that they would price a barrel of oil against gold. On-going negotiations, between OPEC and the major oil companies to revise the oil price agreement established in 1971 in Tehran, finally failed on October 10, 1973. 1973 oil embargo The persistence of the Arab-Israeli conflict finally triggered a response that transformed OPEC into a formidable political force.

After the Six Day War of 1967, the Arab members of OPEC formed a separate, overlapping group, the Organization of Arab Petroleum Exporting Countries, for the purpose of centering policy and exerting pressure on the West over its support of Israel . Egypt and Syria, though not major oil-exporting countries, joined the latter grouping to help articulate its objectives. Later, the Yom Kippur War of 1973 galvanized Arab opinion. Furious at the emergency re-supply effort that had enabled Israel to withstand Egyptian and Syrian forces, the Arab world imposed the 1973 oil embargo against the United States and Western Europe , while non-Arab OPEC members did not. The 1980s oil gluts After 1980, oil prices began a six-year decline that culminated with a 46 percent price drop in 1986. This was due to reduced demand and over-production that produced a glut on the world market. This caused OPEC to lose its unity. OPEC net oil export revenues fell in the 1980s.

Responding to war and low prices Leading up to the 1990-91 Gulf War, Iraqi President Saddam Hussein advocated that OPEC push world oil prices up, thereby helping Iraq, and other member states, service debts. But the division of OPEC countries occasioned by the Iraq-Iran War and the Iraqi invasion of Kuwait marked a low point in the cohesion of OPEC. Once supply disruption fears that accompanied these conflicts dissipated, oil prices began to slide dramatically. After oil prices slumped at around $15 a barrel in the late 1990s, concerted diplomacy, sometimes attributed to Venezuela’s president Hugo Chávez, achieved a coordinated scaling back of oil production beginning in 1998. In 2000, Chávez hosted the first summit of heads of state of OPEC in 25 years. The next year, however, the September 11, 2001 attacks against the United States , the following invasion of Afghanistan, and 2003 invasion of Iraq and subsequent occupation prompted a surge in oil prices to levels far higher than those targeted by OPEC during the preceding period. Indonesia withdrew from OPEC to protect its oil supply interests.

On November 19, 2007, global oil prices reacted strongly as OPEC members spoke openly about potentially converting their cash reserves to the euro and away from the US dollar. On October 10, 2008, oil traded below $85 on the New York Mercantile Exchange. In response OPEC has stated that it will meet November 18, 2008, a month ahead of their regularly scheduled meeting to discuss cutting production as oil experiences declining world demand. Production disputes The economic needs of the OPEC member states often affects the internal politics behind OPEC production quotas. Various members have pushed for reductions in production quotas to increase the price of oil and thus their own revenues. These demands conflict with Saudi Arabia's stated long-term strategy of being a partner with the world's economic powers to ensure a steady flow of oil that would support economic expansion. Part of the basis for this policy is the Saudi concern that expensive oil or oil of uncertain supply will drive developed nations to conserve and develop alternative fuels.

To this point, former Saudi Oil Minister Sheikh Yamani famously said in 1973: "The stone age didn't end because we ran out of stones." One such production dispute occurred on September 10, 2008, when the Saudis reportedly walked out of OPEC negotiating session where the cartel voted to reduce production. Although Saudi Arabian OPEC delegates officially endorsed the new quotas, they stated anonymously that they would not observe them. The New York Times quoted one such anonymous OPEC delegate as saying “Saudi Arabia will meet the market’s demand. We will see what the market requires and we will not leave a customer without oil. The policy has not changed.” Membership Current members OPEC has twelve member countries: six in the Middle East , four in Africa , and two in South America . <div style="line-height:90%; font-size:80%"></div> Former members The United States was a member during its formal occupation of Iraq via the Coalition Provisional Authority. Economics OPEC decisions have had considerable influence on international oil prices.

For example, in the 1973 energy crisis OPEC refused to ship oil to western countries that had supported Israel in the Yom Kippur War or 6 Day War, which they fought against Egypt and Syria. This refusal caused a fourfold increase in the price of oil, which lasted five months, starting on October 17, 1973, and ending on March 18, 1974. OPEC nations then agreed, on January 7, 1975, to raise crude oil prices by 10%. At that time, OPEC nations — including many who had recently nationalized their oil industries — joined the call for a new international economic order to be initiated by coalitions of primary producers. Concluding the First OPEC Summit in Algiers they called for stable and just commodity prices, an international food and agriculture program, technology transfer from North to South, and the democratization of the economic system. Overall, the evidence suggests that OPEC did act as a cartel, when it adopted output rationing in order to maintain price. Since currently worldwide oil sales are denominated in U.S.

dollars, changes in the value of the dollar against other world currencies affect OPEC's decisions on how much oil to produce. For example, when the dollar falls relative to the other currencies, OPEC-member states receive smaller revenues in other currencies for their oil, causing substantial cuts in their purchasing power. After the introduction of the euro , pre-invasion Iraq decided it wanted to be paid for its oil in euros instead of US dollars causing OPEC to consider changing its oil exchange currency to euros, although after Iraq's invasion, the interim government reversed this policy, and the subsequent Iraq governments stuck to the US dollar. Member states Iran and Venezuela have undergone similar shifts from the dollar to the Euro. Current quotas Using quotas to help mitigate global warming As fossil fuel consumption produces large amounts of CO2 and other greenhouse gases , it has been proposed that if OPEC and the IEA established the proper production quota system, global warming effects could be reduced. While OPEC is indeed drastically reducing its output, this is due to financial reasons, not social ones.

(Wikipedia) OPEC - Latest China business news – China Business Search OPEC Organization of the Petroleum Exporting Countries share to: 5 The Organization of the Petroleum Exporting Countries is an intergovernmental organization of twelve oil-producing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has had its headquarters in Vienna since 1965, and hosts regular meetings among the oil ministers of its Member Countries. Indonesia withdrew in 2008 after it became a net importer of oil, but stated it would likely return if it became Articles 1-10 of 2,065 results Page:1 2 3 4 5 NEXT >> Sort by: Dollar rebounds, European stocks up By Bloomberg(China Daily)2017-01-04 07:57 The US Dollar Index recovered from an earlier loss to extend Monday's gain, while European equities advanced after Asian markets and crude oil rose on the first full trading day of the New Year. A private factory gauge indicated strength in China's economy. The dollar was at its strongest against th...

How to break the oil spell over OPEC By Zhu Min(China Daily)2016-12-29 08:11 One clear lesson for oil-exporting countries in recent years, and especially in 2016, is that they should adjust their public policies to promote innovation and diversify their economies. The agreement of the Organization of the Petroleum Exporting Countries in late November to cut production - the ... Successful investors should not follow the herd By Huang Xiangyang(China Daily)2016-12-27 07:41 A driver fuels his car at a gas station in Jiangxi province. Oil prices have been rising recently.[Photo provided for China Daily]One of the lessons I have learned over the years is that to beat the market you have to do just the opposite of what others do. In the battle for wealth the winners are a...

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Gasoline, diesel prices rise By Yang Ziman(China Daily)2016-12-15 07:39 A worker helps refuel a car at a gas station in Nanjing, Jiangsu province, on Wednesday. [Photo/China Daily]Increase brought on by moves by OPEC and 11 countries to cut crude output within six monthsChina saw its biggest gasoline and diesel price increase in the past four years late last night, driv... What's news (China Daily)2016-12-15 07:26 Govts & policies 11th private refiner gets crude quota in 2016 China has granted independent refiner Haike Ruilin Chemical Co a preliminary annual crude oil import quota of 2.1 million metric tons, an official industry body said on Wednesday, the 11th so-called teapot to be allowed to buy foreign cr...

As inflation grows, higher borrowing costs will just be the order of the day By Peter Liang(China Daily)2016-12-14 07:32 US stocks have fluctuated amid payroll data that have bolstered speculation the economy is strong enough to weather higher interest rates. The crucial question now is how fast will US interest rates go up next year. Michael Nagle / BloombergIf you want to know where the stock market is headed for,... Emerging markets the choice playground for savvy investors By Peter Liang(China Daily)2016-12-13 07:35 Savvy investors are setting their sights on emerging markets, including Russia, Brazil and the Chinese mainland, where equities are trading at discounts in terms of average multiples to those of the United States. Michael Nagle / BloombergThe continued surge on Wall Street since Donald Trump's sur...

Citi sees firm 2017 show in commodities (China Daily)2016-12-12 07:49 Citigroup Inc has given a clarion call for commodity bulls, predicting that most raw materials are expected to perform strongly next year as global economic growth picks up, the oversupply that's dogged markets finally dissipates and investors plow in more funds.The bank is bullish on oil, copper, z... OPEC - Wikipedia, the free encyclopedia OPEC Headquarters Vienna , Austria Official languages English [1] Type Trade bloc Member states 12 Libya (since January 1, 2007) Establishment - Statute September 10-14 1960 4,577,232 sq mi Population - estimate 369,368,429 - Density 31.16/km2 80.7/sq mi Currency Indexed as USD-per-barrel Website The Organization of the Petroleum Exporting Countries (OPEC) is a cartel of twelve countries made up of Algeria , Angola , Ecuador , Iran , Iraq , Kuwait , Libya , Nigeria , Qatar , Saudi Arabia , the United Arab Emirates , and Venezuela .

The organization has maintained its headquarters in Vienna since 1965, [2] and hosts regular meetings among the oil ministers of its Member Countries. Indonesia withdrew its membership in OPEC in 2008 after it became a net importer of oil, but stated it would likely return if it became a net exporter again. [3] According to its statutes , one of the principal goals is the determination of the best means for safeguarding the Organization's interests, individually and collectively. It also pursues ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations; giving due regard at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient and regular supply of petroleum to consuming nations, and a fair return on their capital to those investing in the petroleum industry. [4] OPEC's influence on the market has been widely criticized. Several members of OPEC alarmed the world and triggered high inflation across both the developing and developed world when they used oil embargoes in the 1973 oil crisis .

OPEC's ability to control the price of oil has diminished somewhat since then, due to the subsequent discovery and development of large oil reserves in the Gulf of Mexico and the North Sea , the opening up of Russia , and market modernization. OPEC nations still account for two-thirds of the world's oil reserves, and, as of March 2008, 35.6% of the world's oil production, affording them considerable control over the global market. The next largest group of producers, members of the OECD and the Post-Soviet states produced only 23.8% and 14.8%, respectively, of the world's total oil production. [5] As early as 2003, concerns that OPEC members had little excess pumping capacity sparked speculation that their influence on crude oil prices would begin to slip.

[6] [7] Contents [ edit ] History OPEC headquarters in Vienna Venezuela was the first country to move towards the establishment of OPEC by approaching Iran , Gabon , Libya , Kuwait and Saudi Arabia in 1949, suggesting that they exchange views and explore avenues for regular and closer communication among petroleum-producing nations.[ citation needed ] In 10-14 September 1960, at the initiative of the Venezuelan Energy and Mines minister Juan Pablo Pérez Alfonzo and the Saudi Arabian Energy and Mines minister Abdullah al-Tariki , the governments of Iraq , Iran , Kuwait , Saudi Arabia and Venezuela met in Baghdad to discuss ways to increase the price of the crude oil produced by their respective countries.[ citation needed ] OPEC was founded in Baghdad, triggered by a 1960 law instituted by American President Dwight Eisenhower that forced quotas on Venezuelan and Persian Gulf oil imports in favor of the Canadian and Mexican oil industries.[ citation needed ] Eisenhower cited national security, land access to energy supplies, at times of war.[ citation needed ] When this led to falling prices for oil in these regions, Venezuela's president Romulo Betancourt reacted seeking an alliance with oil producing Arab nations as a preemptive strategy to protect the continuous autonomy and profitability

 of Venezuela's oil.[ citation needed ] Oil exports imports difference As a result, OPEC was founded to unify and coordinate members' petroleum policies.

Original OPEC members include Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Between 1960 and 1975, the organization expanded to include Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), and Nigeria (1971). Ecuador and Gabon were members of OPEC, but Ecuador withdrew on December 31, 1992 [8] because they were unwilling or unable to pay a $2 million membership fee and felt that they needed to produce more oil than they were allowed to under the OPEC quota. [9] Similar concerns prompted Gabon to follow suit in January 1995 [4] . Angola joined on the first day of 2007. Russia and Norway joined as non-permanent members in the organisation in early 2000. [10] Indicating that OPEC is not averse to further expansion, Mohammed Barkindo, OPEC's Secretary General, recently asked Sudan to join.

[11] Iraq remains a member of OPEC, though Iraqi production has not been a part of any OPEC quota agreements since March 1998. In May 2008, Indonesia announced that it would leave OPEC when its membership expired at the end of that year, having become a net importer of oil and being unable to meet its production quota . [12] A statement released by OPEC on 10 September 2008 confirmed Indonesia's withdrawal, noting that it "regretfully accepted the wish of Indonesia to suspend its full Membership in the Organization and recorded its hope that the Country would be in a position to rejoin the Organization in the not too distant future." [13] [ edit ] 1973 oil embargo Main article: 1973 oil crisis Long-term oil Prices, 1861-2007 (orange line adjusted for inflation, blue not adjusted). The persistence of the Arab-Israeli conflict finally triggered a response that transformed OPEC into a formidable political force.

After the Six Day War of 1967, the Arab members of OPEC formed a separate, overlapping group, the Organization of Arab Petroleum Exporting Countries , for the purpose of centering policy and exerting pressure on the West over its support of Israel . Egypt and Syria , though not major oil-exporting countries, joined the latter grouping to help articulate its objectives. Later, the Yom Kippur War of 1973 galvanized Arab opinion. Furious at the emergency re-supply effort that had enabled Israel to withstand Egyptian and Syrian forces, the Arab world imposed the 1973 oil embargo against the United States and Western Europe . [ edit ] The 1980s oil gluts Main article: 1980s oil glut OPEC net oil export revenues for 1971 - 2007. [14] After 1980, oil prices began a six-year decline that culminated with a 46 percent price drop in 1986. This was due to reduced demand and over-production that produced a glut on the world market. This caused OPEC to lose its unity.

OPEC net oil export revenues fell in the 1980s. [ edit ] Responding to war and low prices Main articles: Oil price increase of 1990 and Oil price increases since 2003 Leading up to the 1990-91 Gulf War , Iraqi President Saddam Hussein advocated that OPEC push world oil prices up, thereby helping Iraq, and other member states, service debts. But the division of OPEC countries occasioned by the Iraq-Iran War and the Iraqi invasion of Kuwait marked a low point in the cohesion of OPEC. Once supply disruption fears that accompanied these conflicts dissipated, oil prices began to slide dramatically. After oil prices slumped at around $15 a barrel in the late 1990s, concerted diplomacy, sometimes attributed to Venezuela’s president Hugo Chávez , achieved a coordinated scaling back of oil production beginning in 1998. In 2000, Chávez hosted the first summit of heads of state of OPEC in 25 years.

The next year, however, the September 11, 2001 attacks against the United States , the following invasion of Afghanistan , and 2003 invasion of Iraq and subsequent occupation prompted a surge in oil prices to levels far higher than those targeted by OPEC during the preceding period. Indonesia withdrew from OPEC to protect its oil supply interests. On November 19, 2007, global oil prices reacted strongly as OPEC members spoke openly about potentially converting their cash reserves to the euro and away from the US dollar. [15] On October 10, 2008, oil traded below $85 on the New York Mercantile Exchange . In response OPEC has stated that it will meet November 18, 2008, a month ahead of their regularly scheduled meeting to discuss cutting production as oil experiences declining world demand. [16] [ edit ] Production disputes The economic needs of the OPEC member states often affects the internal politics behind OPEC production quotas. Various members have pushed for reductions in production quotas to increase the price of oil and thus their own revenues.

These demands conflict with Saudi Arabia's stated long-term strategy of being a partner with the world's economic powers to ensure a steady flow of oil that would support economic expansion. [17] Part of the basis for this policy is the Saudi concern that expensive oil or oil of uncertain supply will drive developed nations to conserve and develop alternative fuels. To this point, former Saudi Oil Minister Sheikh Yamani famously said in 1973: "The stone age didn't end because we ran out of stones." [18] One such production dispute occurred on September 10, 2008, when the Saudis reportedly walked out of OPEC negotiating session where the cartel voted to reduce production. Although Saudi Arabian OPEC delegates officially endorsed the new quotas, they stated anonymously that they would not observe them. The New York Times quoted one such anonymous OPEC delegate as saying “Saudi Arabia will meet the market’s demand. We will see what the market requires and we will not leave a customer without oil. The policy has not changed.” [19] In December 2008 oil was trading below 38 dollars a barrel, over a hundred dollars less than what it was six months before.

[ edit ] Current members OPEC has twelve member countries: six in the Middle East , four in Africa , and two in South America . Country [ edit ] Economics OPEC decisions have had considerable influence on international oil prices. For example, in the 1973 energy crisis OPEC refused to ship oil to western countries that had supported Israel in the Yom Kippur War or 6 Day War , which they fought against Egypt and Syria . This refusal caused a fourfold increase in the price of oil, which lasted five months, starting on October 17, 1973, and ending on March 18, 1974. OPEC nations then agreed, on January 7, 1975, to raise crude oil prices by 10%. At that time, OPEC nations — including many who had recently nationalized their oil industries — joined the call for a new international economic order to be initiated by coalitions of primary producers.

Concluding the First OPEC Summit in Algiers they called for stable and just commodity prices, an international food and agriculture program, technology transfer from North to South, and the democratization of the economic system.[ citation needed ] Overall, the evidence suggests that OPEC did act as a cartel , when it adopted output rationing in order to maintain price. [23] Since currently worldwide oil sales are denominated in U.S. dollars , changes in the value of the dollar against other world currencies affect OPEC's decisions on how much oil to produce. For example, when the dollar falls relative to the other currencies, OPEC-member states receive smaller revenues in other currencies for their oil, causing substantial cuts in their purchasing power. After the introduction of the euro , pre-invasion Iraq decided it wanted to be paid for its oil in euros instead of US dollars causing OPEC to consider changing its oil exchange currency to euros, although after Iraq's invasion, the interim government reversed this policy, and the subsequent Iraq governments stuck to the US dollar. [24] Member states Iran [25] and Venezuela [26] have undergone similar shifts from the dollar to the Euro.

OPEC - Latest China business news – China Business Search OPEC Organization of the Petroleum Exporting Countries share to: 5 The Organization of the Petroleum Exporting Countries is an intergovernmental organization of twelve oil-producing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has had its headquarters in Vienna since 1965, and hosts regular meetings among the oil ministers of its Member Countries. Indonesia withdrew in 2008 after it became a net importer of oil, but stated it would likely return if it became Articles 11-20 of 2,064 results Page: << PREV 1 2 3 4 5 NEXT >> Sort by: As inflation grows, higher borrowing costs will just be the order of the day By Peter Liang(China Daily)2016-12-14 07:32 US stocks have fluctuated amid payroll data that have bolstered speculation the economy is strong enough to weather higher interest rates. The crucial question now is how fast will US interest rates go up next year.

Michael Nagle / BloombergIf you want to know where the stock market is headed for,... Emerging markets the choice playground for savvy investors By Peter Liang(China Daily)2016-12-13 07:35 Savvy investors are setting their sights on emerging markets, including Russia, Brazil and the Chinese mainland, where equities are trading at discounts in terms of average multiples to those of the United States. Michael Nagle / BloombergThe continued surge on Wall Street since Donald Trump's sur... Citi sees firm 2017 show in commodities (China Daily)2016-12-12 07:49 Citigroup Inc has given a clarion call for commodity bulls, predicting that most raw materials are expected to perform strongly next year as global economic growth picks up, the oversupply that's dogged markets finally dissipates and investors plow in more funds.The bank is bullish on oil, copper, z...

OPEC plan to raise oil price may not succeed By Mei Xinyu(China Daily)2016-12-12 07:37 On Nov 30 when the Organization of Petroleum Exporting Countries agreed to reduce its output for the first time since 2008, international oil prices increased sharply. But will the OPEC's plan to raise oil price by cutting output succeed? OPEC is the world's most influential oil cartel and influence... Analysts doubt OPEC deal will lift oil prices By Zheng Xin(China Daily)2016-12-09 07:49 Whether or not oil prices will rise, due to OPEC's planned crude output cut, remains to be seen, top industry analysts said.OPEC member countries agreed last fortnight to cut their oil output by 1.2 million barrels per day. The first such deal in eight years, the agreement intends to shrink a global...

Energy stocks may not be a sure win, but the risks seem low By Peter Liang(China Daily)2016-12-06 07:39 The surge in the price of crude in response to a decision by the Organization of Petroleum Exporting Countries to cut production has greatly pushed up stock prices of the world's major oil companies. But, buying energy stocks may not be such a sure bet as it seems to be. Eddie Seal / BloombergThe ... OPEC drives Saudi supply cuts By Bloomberg(China Daily)2016-12-03 07:31 The effect of OPEC's deal to reduce crude output starting next month is already being felt in Saudi Arabia, the world's biggest oil market. OPEC's biggest producer - Saudi Arabia is also the world's biggest crude exporter - is planning to curb the additional crude it offers to Asia customers on top ...

OPEC cut to affect upstream sectors By Zheng Xin(China Daily)2016-12-02 08:15 OPEC's agreement to curb crude production for the first time in eight years will have more impact on the upstream sectors of China's oil giants, analysts said.Domestic oil companies that focus on upstream sectors, including exploration and production, are likely to see a rise in revenue as the deal ... Airlines to take hit from rising oil price By Zhu Wenqian(China Daily)2016-12-02 07:59 Chinese airlines are expected to bear the brunt of a rising oil price after OPEC came to an agreement to limit production, and airlines are likely to levy fuel surcharges on domestic and international flights, experts said.On Wednesday, OPEC reached a consensus on production cuts to ease excess glob... Little effect expected in OPEC cuts By Xin Zhiming(China Daily)2016-12-02 07:33 Pumps belonging to an oil company do their work in the Inner Mongolia autonomous region.

[Liu Xuezhong/For China Daily]China's limited reliance on oil likely to restrain effect of production cuts OPEC's first agreement to cut oil production in eight years is set to push up oil prices, but analysts s... Another former OPEC member, Gabon, wants to rejoin oil group: sources Another former OPEC member, Gabon, wants to rejoin oil group: sources By Rania El Gamal and Alex Lawler Pin it Share The logo of the Organization of the Petroleum Exporting Countries (OPEC) is pictured at its headquarters in Vienna, Austria, March 21, 2016. REUTERS/Leonhard Foeger More By Rania El Gamal and Alex Lawler DUBAI/LONDON (Reuters) - The African nation of Gabon wants to rejoin OPEC after more than two decades, two OPEC sources said, becoming the second former member in a year to seek a return to the oil exporters' group just as it is taking the first steps in years to prop up prices.

If it returned, Gabon would be the smallest producer in the Organization of the Petroleum Exporting Countries and bring its ranks to 14 countries following last year's return of Indonesia, which had quit in 2008. "They sent the request to OPEC officially," said one of the sources, an OPEC delegate. An oil official in Gabon declined to comment. Gabon joined OPEC in 1975 and left in 1995 over the exporter group's refusal to grant its request for reduced annual contributions in line with the country's small production, news reports said at the time. The move to rejoin comes as key OPEC members and outside producers such as Russia are attempting to support prices through a deal to freeze output which will be discussed this weekend in Doha. The initiative has helped oil prices to start recovering from a 12-year low reached in January. OPEC in 2014 had abandoned its traditional role of cutting supply to support the market, accelerating a drop in prices which were falling due to oversupply and prompting critics to question its relevance.

Gabon produces 200,000 barrels of oil per day (bpd) according to the International Energy Agency, and output is in decline. Last year, the government launched an offshore licensing round in a bid to boost exploration. [nL8N12R24E] Ecuador, which pumps 530,000 bpd, is currently the smallest OPEC producer. The next step, the sources said, would be for OPEC oil ministers to discuss Gabon's request. They hold their next meeting in June. OPEC rules state that a country needs to have "a substantial net export of crude" in order to become a full member. Still, the ministers waived this requirement with the decision to welcome back Indonesia, now a net oil importer. Whether Gabon's return would be as straightforward is not clear. Indonesia was deemed by OPEC to have "suspended" its membership, while it calls Gabon's departure a "termination" - implying a more formal severing of ties.

(Additional reportning by Joe Bavier; Editing by David Evans) Reblog OPEC - Enipedia OPEC Jump to: navigation , search [ edit ] Organization of the Petroleum Exporting Countries The Organization of the Petroleum Exporting Countries is a cartel of twelve countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings among the oil ministers of its Member Countries. Indonesia withdrew its membership in OPEC in 2008 after it became a net importer of oil, but stated it would likely return if it became a net exporter in the world again. According to its statutes, one of the principal goals is the determination of the best means for safeguarding the cartel's interests, individually and collectively.

It also pursues ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations; giving due regard at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient and regular supply of petroleum to consuming nations, and a fair return on their capital to those investing in the petroleum industry. OPEC's influence on the market has been widely criticized, since it became effective in determining production and prices. Arab members of OPEC alarmed the developed world when they used the “oil weapon” during the Yom Kippur War by implementing oil embargoes and initiating the 1973 oil crisis. Although largely political explanations for the timing and extent of the OPEC price increases are also valid, from OPEC’s point of view, these changes were triggered largely by previous unilateral changes in the world financial system and the ensuing period of high inflation in both the developed and developing world. This explanation encompasses OPEC actions both before and after the outbreak of hostilities in October 1973, and concludes that “OPEC countries were only “staying even” by dramatically raising the dollar price of oil.

” OPEC's ability to control the price of oil has diminished somewhat since then, due to the subsequent discovery and development of large oil reserves in Alaska, the North Sea, Canada, the Gulf of Mexico, the opening up of Russia, and market modernization. OPEC nations still account for two-thirds of the world's oil reserves, and, as of April 2009, 33.3% of the world's oil production, affording them considerable control over the global market. The next largest group of producers, members of the OECD and the Post-Soviet states produced only 23.8% and 14.8%, respectively, of the world's total oil production. As early as 2003, concerns that OPEC members had little excess pumping capacity sparked speculation that their influence on crude oil prices would begin to slip.

( wikipedia ) [ edit ] Oil Production by Country (millions b/d) Oil Production (millions b/d) by Country Oil Production OPEC organisation in poll - public opinion online Details ENG -The Organization of Petroleum Exporting Countries (OPEC) is a cartel of twelve countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. The organization has maintained its headquarters in Vienna since 1965, and hosts regular meetings among the oil ministers of its Member Countries. Indonesia withdrew its membership in OPEC in 2008 after it became a net importer of oil, but stated it would likely return if it became a net exporter again. According to its statutes, one of the principal goals is the determination of the best means for safeguarding the Organization's interests, individually and collectively. It also pursues ways and means of ensuring the stabilization of prices in international oil ...

No shortage of crude oil by OPEC It takes a price increase There is a lot that we can do to curb speculation, but the claim that rising gas prices are not based on supply and demand is simply not true [“OPEC: No shortage of crude oil in market,” Business, April 19]. Speculators only magnify and quicken the effects of supply and demand. In this case, the cutoff of Libyan oil was almost 2 percent of the world supply and OPEC’s spare capacity turned out to be a mirage. Dick Burkhart, Seattle Read more: The Seattle Times (April 25, 2011) martina - in poll OPEC Chances for Economic Recovery Linked to OPEC Top officials with the Organization of Petroleum Exporting Countries are meeting in Vienna Sunday, and are expected to make a decision about possible cuts in oil production to boost prices. The meeting is being watched closely by the USA and other industrial countries, with some officials warning new cuts and higher oil prices could keep the global economy mired in a recession. OPEC members gathering in Vienna face a difficult decision. Many of the oil-exporting countries would like to see higher prices.

But Saudi Oil Minister Ali al-Naimi says the global recession makes that difficult. ... taktek - in poll OPEC OPEC says it's willing to cut oil production OPEC, supplier of 40 percent of the world's oil, will reduce oil production if necessary to support prices, Secretary General Abdalla el-Badri said. "I am sure if at the May meeting there is a need to cut, they will take that decision," el-Badri said Sunday. "In OPEC member countries, 35 projects have been delayed because of falling oil prices." Production cuts by the Organization of Petroleum Exporting Countries since September have failed to raise oil prices to the $70 a barrel sought by members as the global recession erodes demand. The average price in the first quarter was $43.32 a ... taktek - in poll OPEC

Question: Which country withdrew from the Organization of the Petroleum Exporting Countries (OPEC) in 2008 after it became a net importer of oil?
Answer: Indonesia