History of 0 1 OPEC
The Organization of Petroleum Exporting Countries, also known as the Organization of Petroleum Exporting Countries, 1960 was founded in Baghdad. The original intention of its establishment is to get rid of the economic exploitation of third world oil-producing countries by western oil monopoly consortia. Of course, it is another story that the dragon slayer finally turned into a dragon. 1973 is a famous battle of the Organization of Petroleum Exporting Countries. At that time, the Organization of Petroleum Exporting Countries refused to transport oil to western countries that supported Israel against Egypt and Syria in the Yom Kippur War, which led to a fourfold increase in oil prices. Through this action, members of the Organization of Petroleum Exporting Countries also understood the truth of holding a group to keep warm. Even after the Iran-Iraq war broke out among the later members and Iraq invaded Kuwait, the overall operational framework of the Organization of Petroleum Exporting Countries has been well maintained.
The membership of the Organization of Petroleum Exporting Countries is not static. Although they can better influence oil prices together, they will also limit their oil production strategies. Qatar and Ecuador withdrew from the Organization of Petroleum Exporting Countries in 20 19 and 2020 respectively. At present, the Organization of Petroleum Exporting Countries has 13 member countries, controlling more than 78% of the world's oil reserves, 40% of its output and more than half of its trade volume. At the same time, with the accession of Russia, Kazakhstan and other six countries, the Organization of Petroleum Exporting Countries has expanded to OPEC+,and its influence on the crude oil market has been further enhanced.
Speaker of the European Parliament-Saudi Arabia
The Organization of Petroleum Exporting Countries usually holds a meeting every six months to make decisions on some issues such as production reduction. Moreover, this kind of resolution requires the consent of every member state, that is, the status of all member States is essentially the same. But a snake without a head can't do it. As an organization, OPEC must have one person, and that is Saudi Arabia. As the largest oil producer, Saudi Arabia's output accounts for13 of the Organization of Petroleum Exporting Countries. However, it can influence the decision-making of the Organization of Petroleum Exporting Countries, not only because of its large scale, but also for deeper reasons.
The core means for OPEC to control oil prices is to adjust its own output. Low oil prices produce less, while high oil prices produce more. In order to achieve this control effect, the member countries of the Organization of Petroleum Exporting Countries are required not to produce crude oil at full capacity, but to maintain standby capacity at any time. This means that it is not allowed to pick up money on the ground, and the country is profit-seeking. If a person wants to give up this interest, it will inevitably mean that there are greater interests waiting for him. As the largest oil producer in the Organization of Petroleum Exporting Countries, Saudi Arabia has the ability to vacate some production capacity. At the same time, as a regional power, Saudi Arabia also has political demands, and its influence in international affairs and many other things need to be realized by controlling oil prices. Therefore, it is the most effective way for Saudi Arabia to influence the oil market through the amplifier of the Organization of Petroleum Exporting Countries.
Internal instability-UAE
However, the Organization of Petroleum Exporting Countries is not monolithic. As the third largest oil producer, UAE has always wanted to improve its voice to adapt to its position in the Arab world. In the past two or three years, the UAE has occasionally proposed to increase its production or simply threatened to withdraw from the Organization of Petroleum Exporting Countries.
The differences between UAE and Saudi Arabia are mainly in two points, one is the differences in Yemen war, and the other is the differences in production control. In 20 15, Saudi Arabia, United Arab Emirates and other countries 10 intervened militarily in Yemen, but the war continued. With the passage of time, differences have also emerged among countries. Saudi Arabia continued to support Hadi's government, but the UAE chose to support the separatist movement in southern Yemen, namely the Southern Transitional Council (STC), making it the main ground agent of the UAE in Yemen.
The difference in output is mainly due to the fact that UAE is the only OPEC country that has been expanding its production capacity in recent years. Abu Dhabi National Oil Company of the United Arab Emirates hopes to increase its oil production capacity to 5 million barrels per day by 2025, while the output of the United Arab Emirates in June+10 this year was 3.045 million barrels per day. At present, the Organization of Petroleum Exporting Countries strictly controls the overall output, and its control benchmark is 10 output in 2065+07, which does not reflect the efforts of the UAE to increase production in the last five years. This contradiction has caused the UAE to be very dissatisfied with the current OPEC production restriction plan.
In July, 20021,the United Arab Emirates threatened to withdraw from the Organization of Petroleum Exporting Countries, believing that the production reduction quota at that time was unfair. After two months of sawing, the production quota of UAE increased by 400,000 barrels per day. On March 3 this year, it was once again reported that the United Arab Emirates would launch the Organization of Petroleum Exporting Countries, which caused the oil price to fall by more than 3% in a short time. But then the UAE issued a statement calling it false news.
But generally speaking, due to the relatively limited surplus capacity, the Organization of Petroleum Exporting Countries is still a Saudi-led oil organization.
Information we need to pay attention to
Every month, the monthly report of the Organization of Petroleum Exporting Countries will be published on 1 1- 15. The main contents include the output of OPEC member countries in the previous month, OPEC's expectation of crude oil supply and demand in that year, and OECD national inventory statistics. These are very important data for us to analyze oil prices, which need our close attention.
The Organization of Petroleum Exporting Countries mainly controls oil prices by adjusting production. Under normal circumstances, the Organization of Petroleum Exporting Countries will hold a meeting every six months to adjust future production. The last meeting was held on February 4, last year, at 65438, when the Organization of Petroleum Exporting Countries decided to maintain the production reduction plan of 2 million barrels per day until the end of 2023. The next meeting will be held on June 4 this year.
05 abstract
The Organization of Petroleum Exporting Countries (OPEC) provides the largest amount of crude oil in the world, which has a decisive impact on oil prices due to the great changes in its output. It is a variable that we must pay attention to when studying crude oil.