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Watch: What is OPEC and why does it matter

Updated : December 03, 2019 06:28 AM IST

OPEC, or Organisation of the Petroleum Exporting Countries, is a 14-country, Middle East-dominated producer group that counts world No 1 oil exporter Saudi Arabia, Iraq and Iran among its members.\

The mission of OPEC is to coordinate and unify the petroleum policies of its member countries and ensure the stabilisation of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry.

OPEC is a permanent, intergovernmental organisation, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.

The organisation, which pumps almost a third of global oil supply, sees oil consumption in 2023 reaching 103.9 million barrels per day (bpd), down from 104.5 million bpd in last year's report.

OPEC's production of crude oil and other liquids is expected to decline to 32.8 million barrels per day (bpd) by 2024, the group said in its 2019 World Oil Outlook published on Tuesday. That compares with 35 million bpd in 2019.

OPEC supply has been falling in the last few years under a pact with Russia and other non-members to support the market. The resulting higher oil prices have bolstered non-OPEC output and OPEC is expected to restrain output in 2020.

(With Reuters inputs)
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