Highlights of the India-OPEC Energy Dialogue.

The fourth high level meeting of India-OPEC Energy Dialogue was held virtually on November 5, 2020. From India side, the dialogue was represented by the Oil Minister Dharmendra Pradhan. The dialogue is held since 2015.

Highlights

On the occasion, India put forward the issue of assessing the disruption of oil supply that has been induced amid the COVID-19 pandemic. India urged the Organization of the Petroleum Exporting Countries (OPEC) to address the anomalies that is prevalent in differential crude oil prices. Currently, the prices for the crude oil is fixed by the OPEC members for different regions.

Organization of the Petroleum Exporting Countries(OPEC)

OPEC is an intergovernmental organization comprising of 13 nations. The organization was founded on 14 September 1960 in Baghdad. The first five members that founded the organization include- Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. OPEC has been headquartered in Vienna, Austria though Austria is not an OPEC member state. The current OPEC members include- Algeria, Angola, Equatorial Guinea, Gabon, Iraq, Kuwait,  Iran, Libya, Nigeria,  Republic of the Congo, Saudi Arabia , United Arab Emirates and Venezuela. Ecuador, Indonesia and Qatar are the countries that left the grouping. The most recent being Qatar that withdrew in 2019.

OPEC+

OPEC+ grouping was formed in 2016 with the addition of 10 additional oil exporting countries led by Russia. These countries had cooperated in fixing the global crude oil prices by agreeing to production quotas. OPEC+ countries encourage excess capital investment in the global oil sector rather than encouraging cheaper oil production at lower capital investment. The 10 members include- Russia, Azerbaijan, Brunei, Bahrain, Kazakhstan, Malaysia, Oman, Mexico, South Sudan and Sudan.