OPEC and OPEC+
Context:
The recent U.S. intervention in Venezuela—a founding member of OPEC—has brought the role of the Organization of the Petroleum Exporting Countries (OPEC) back into focus.
While the U.S. aims to control Venezuela's oil to oust rivals like China and Russia the immediate market impact remains limited.
OPEC vs. OPEC+:
OPEC (Organization of the Petroleum Exporting Countries):
It was established in 1960.
The founding members are Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
Countries exited in recent times: Angola (2023) and Qatar (2019).
Headquarters: Vienna, Austria.
The objectiveis to coordinate petroleum policies and ensure fair and stable prices for producers.
OPEC+:
It was created in 2016 as a larger alliance to counter falling oil prices.
It includes the core 13 OPEC members plus 10 non-OPEC countries (notably Russia, Mexico, and Kazakhstan)
This expanded group controls a larger share of global crude oil production, giving it significant influence over global prices through coordinated supply cuts or increases.
Venezuela’s Status:
Venezuela holds the world's largest proven oil reserves (over 300 billion barrels), surpassing Saudi Arabia.
Despite its reserves, it currently contributes only about 3.5% of OPEC's total exports and roughly 1% of global oil supplies.
Production has plummeted due to U.S. sanctions, mismanagement, and deteriorating infrastructure.
Most of its current supply is heavy crude, which requires specialized refineries.