What Is Opec Plus Agreement

Filed under:Uncategorized — posted by admin on April 16, 2021 @ 5:35 am

In 1971, an agreement was signed between major oil companies and OPEC members operating in the Mediterranean basin, the so-called Tripoli Agreement. The agreement signed on 2 April 1971 increased oil prices and increased the share of profits of producing countries. [22] International agreements on raw materials covering products such as coffee, sugar, tin and, more recently, oil (OPEC: Organization of Petroleum Exporting Countries) are examples of international cartels that have conducted public agreements between different national governments. The authorisation of a new Member State requires the agreement of three quarters of the current OPEC members, including the five founders. [123] In October 2015, Sudan formally applied for membership,[124] but is not yet a member. Oil ministers from the Organization of petroleum exporting countries and other Russian-led producers met via video conference on Saturday and agreed to continue to cut 9.7 million barrels per day – or about 10 percent of world production in normal times – until July, according to an OPEC press release. By agreeing to restart production, members of the 13-member Organization of Petroleum Exporting Countries, led by Saudi Arabia and a group of 10 other major Russian-led producing nations, are effectively betting that the recovery in prices will continue. The larger group is called OPEC-plus. The latest news about the effectiveness of coronavirus vaccines, which have pushed oil prices to their highest level since their fall in April, may have made it more difficult to reach an agreement. In response to these higher prices, some oil producers saw less need to maintain supply and wanted to increase pumps to try to improve nearly a year with gloomy oil yields. Is it reasonable for a high-yield manufacturer to reduce production while the low-efficiency producer continues to produce? That`s bad logic. What will happen to my market share if I depreciate? The price will go up and the Russians, the Brazilians, the American shale oil producers will take my share…

We want to tell the world that high-yield producing countries are the countries that gain market share. This is the operational principle in all capitalist countries… One thing is certain: current prices (about $60/bbl) do not support all producers. In the 1990s, OPEC lost its two youngest members who joined in the mid-1970s.

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image: detail of installation by Bronwyn Lace