OPEC and OPEC+: Key Concepts, Member Nations, and Global Influence
OPEC (the Organization of the Petroleum Exporting Countries) is an intergovernmental group of major oil producers, while OPEC+ adds non-OPEC producers such as Russia; together they steer global oil prices and supply through coordinated output decisions.
Each time OPEC+ holds a ministerial meeting and announces a production cut or increase, crude prices tend to swing sharply — rippling through inflation expectations and energy-linked assets. That makes understanding how the world's producers coordinate essential for any trader.
The Organization of the Petroleum Exporting Countries (OPEC), established in 1960, has served as the primary coordinator and decision-maker for global oil policies.
As the complexity of the global oil market increased and new producers emerged, OPEC expanded its cooperative framework by forming OPEC+—an alliance that includes both OPEC members and key non-OPEC oil-producing nations.
This article explores the fundamental concepts of OPEC and OPEC+, introduces their member nations, and examines their influence on the global oil market.
- What OPEC is: an intergovernmental group of major oil producers founded in 1960
- What OPEC+ is: OPEC plus non-OPEC producers such as Russia, formalized from 2016
- Key members: Saudi Arabia (OPEC core) and Russia (largest non-OPEC) anchor the bloc
- Market impact: coordinated output cuts or hikes steer global oil supply and prices
- Challenges: the energy transition, internal interest-balancing, and rising non-OPEC output
1. What is OPEC?
OPEC (Organization of the Petroleum Exporting Countries) is an intergovernmental organization of the world’s leading oil-exporting nations.
Established in 1960, OPEC aims to coordinate its members' oil policies, manage production volumes and prices collectively, and maintain both member interests and global market stability.
2. The Evolution of OPEC
OPEC was founded on September 14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela, who signed an agreement in Baghdad, Iraq.
Over time, additional nations joined the organization.
During the oil crises of the 1970s, OPEC significantly increased oil prices and enhanced its influence in the global oil market. However, changes in market conditions and political factors have sometimes caused conflicts of interest among member nations.
3. OPEC and Former Members
Since its founding in 1960, OPEC's membership has changed over time. Initially composed of five countries, OPEC expanded to include additional members. However, some countries have opted to leave due to economic or policy changes.
OPEC continues to consist of various nations that collectively coordinate oil production policies to influence the global oil market. Below is a list of OPEC members, including former members:
| Country | Join Year | Exit Year |
|---|---|---|
| Saudi Arabia | 1960 | - |
| Iran | 1960 | - |
| Iraq | 1960 | - |
| Kuwait | 1960 | - |
| Venezuela | 1960 | - |
| Qatar | 1961 | 2019 |
| Indonesia | 1962 | 2016 |
| Libya | 1962 | - |
| UAE | 1967 | - |
| Algeria | 1969 | - |
| Nigeria | 1971 | - |
| Ecuador | 1973 | 1992, rejoined 2016, exited 2020 |
| Gabon | 1975 | 1994, rejoined 2016 |
| Angola | 2007 | 2023 |
| Equatorial Guinea | 2017 | - |
| Congo (Brazzaville) | 2018 | - |
4. OPEC’s Global Influence
Since its establishment, OPEC has played a central role in the global oil market. By coordinating the oil production policies of its members, OPEC significantly impacts global oil supply and pricing.
Notably, during the oil crises of 1973 and 1979, OPEC reduced oil supply, causing prices to surge, which had widespread economic repercussions.
However, OPEC faces challenges such as the rise of non-OPEC oil production, the global shift towards renewable energy, and internal conflicts among member nations.
OPEC's decisions and strategies not only affect its members but also have a profound impact on the global economic and political landscape.
5. What is OPEC+?
OPEC+ is an international cooperative framework comprising OPEC members and other key non-OPEC oil-producing countries.
The group was formed to collectively adjust oil production levels to control prices, responding to fluctuations in global supply and demand.
As an extension of OPEC's structure, OPEC+ enables broader collaboration with major oil-producing nations to influence the global oil market.
6. Evolution of OPEC+
The concept of OPEC+ originated in 2016, when a historic production cut agreement was reached between OPEC and non-OPEC producers, such as Russia, in response to a global oil glut and falling prices.
Initially a temporary measure, the successful stabilization of the market led to a formalized OPEC+ mechanism.
Since then, OPEC+ has held regular meetings to adjust production policies, adapting to global economic and market changes.
7. OPEC+ Member Countries
OPEC+ includes OPEC members and non-OPEC oil producers. The group’s composition is generally traced back to the 2016 agreement. Non-OPEC members include:
| Country | Join Year |
|---|---|
| Russia | 2016 |
| Mexico | 2016 |
| Kazakhstan | 2016 |
| Azerbaijan | 2016 |
| Sudan | 2016 |
| South Sudan | 2016 |
| Malaysia | 2016 |
| Oman | 2016 |
| Bahrain | 2016 |
| Brunei | 2016 |
| Bolivia | 2016 |
8. International Impact of OPEC+
OPEC+ has significantly enhanced OPEC's influence in the global oil market. By coordinating the production of a broader group of oil-producing nations, OPEC+ can effectively control oil prices and global supply.
This benefits member nations by stabilizing their economies while also impacting the global economy.
However, OPEC+ faces challenges, including balancing the diverse economic needs of its members and addressing the effects of global energy transitions on traditional oil industries.
9. Frequently Asked Questions (FAQ)
Q1. What is the difference between OPEC and OPEC+?
OPEC is a group of oil-exporting nations, while OPEC+ adds major non-OPEC producers such as Russia for broader coordination (§1, §5).
Q2. Which countries belong to OPEC+?
All OPEC members plus non-OPEC producers including Russia, Mexico, Kazakhstan, and Oman (§7).
Q3. How do OPEC and OPEC+ affect oil prices?
By jointly deciding to raise or cut output, they strongly influence global supply and prices (§4, §8).
Q4. Which country leads OPEC?
Saudi Arabia, one of the world's largest producers, is regarded as the de facto leader (§3).
Q5. When was OPEC+ formed?
In 2016, through a historic production-cut agreement responding to oversupply and falling prices (§6).
10. Summary: The Relationship Between OPEC and OPEC+
The relationship between OPEC and OPEC+ is built on the expansion and collaboration of OPEC's original framework. Key aspects include:
Broader Collaboration:
OPEC+ extends OPEC’s scope by including non-OPEC producers, enabling coordinated action on global oil production policies.
Increased Market Influence:
OPEC and OPEC+ collectively include some of the world's largest oil producers, such as Russia and Saudi Arabia, giving them greater control over oil prices.
Shared Challenges:
Both OPEC and OPEC+ face challenges, such as market demand fluctuations, advancements in renewable energy, and shifts in global economic and political dynamics.
Policy Coordination:
OPEC+ thrives on collaborative policy-making, ensuring the collective interests of its members are protected, particularly during market downturns.
Together, OPEC and OPEC+ form a complementary force, shaping the global oil market and addressing the challenges of a rapidly evolving energy landscape.
Further Reading
- What Is WTI Crude?
- WTI vs Brent vs Dubai
- What Is the Crack Spread?
- Trading Crude Oil CFDs
- Dubai Crude
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