{"id":14304,"date":"2021-03-10T00:00:00","date_gmt":"2021-03-10T00:00:00","guid":{"rendered":"https:\/\/www.nextias.com\/current_affairs\/uncategorized\/10-03-2021\/opec-decision-to-curb-oil-supply\/"},"modified":"2021-03-10T00:00:00","modified_gmt":"2021-03-10T00:00:00","slug":"opec-decision-to-curb-oil-supply","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/10-03-2021\/opec-decision-to-curb-oil-supply","title":{"rendered":"OPEC+ Decision to Curb Oil Supply"},"content":{"rendered":"<p><strong>In News &#8211;<\/strong>Most of the OPEC+ producers, led by the world\u2019s top exporter<strong> Saudi Arabia<\/strong> decided to curb <strong>oil <\/strong>supplies till <strong>April<\/strong>.<\/p>\n<p><strong>About<\/strong><\/p>\n<ul>\n<li>OPEC and its allies, a group known as <strong>OPEC+, agreed not to increase oil supply <\/strong>till April as they await a<strong> more substantial recovery in demand amid the coronavirus pandemic.<\/strong><\/li>\n<li>After <strong>OPEC\u2019s decision, crude oil prices rose to over $71 per barrel <\/strong>although the <strong>prices eased to $69.08 a barrel by 1027 GMT<\/strong>.<\/li>\n<li>Saudi has also raised the selling price of its <strong>oil for Asia.<\/strong><\/li>\n<li>This year, <strong>Iraq has cut annual supply volume<\/strong>s while<strong> Kuwait has shortened the<\/strong> duration of contracts with I<strong>ndian buyers to nine months.<\/strong>\n<ul>\n<li><strong>Iraq and Saudi Arabia <\/strong>are the two biggest oil suppliers to India.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Implications on India<\/strong><\/p>\n<ul>\n<li>India, the world&#8217;s <strong>third-biggest oil importer and consumer stated that <\/strong>the decision by major producers to <strong>extend output cuts as prices move higher <\/strong>could <strong>threaten the consumption led-recovery in some countries.<\/strong>\n<ul>\n<li>\u00a0India imports about<strong> 84% of its overall <\/strong>crude needs with<strong> over 60% <\/strong>of that coming from<strong> Middle Eastern countrie<\/strong>s, which are typically cheaper than <strong>those from the West<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<li>Rising oil prices are <strong>posing fiscal challenges for India, <\/strong>where <strong>heavily-taxed retail fuel<\/strong> <strong>prices have touched record highs<\/strong> in some parts of the country,<strong> threatening the demand-driven recovery.<\/strong><\/li>\n<\/ul>\n<p><strong>Steps taken by India<\/strong><\/p>\n<ul>\n<li>India has asked <strong>state refiners to speed up the diversification of oil imports<\/strong> to <strong>gradually cut their dependence <\/strong>on the <strong>Middle East<\/strong> after the <strong>OPEC+ decision.<\/strong><\/li>\n<li>India, hit hard by the <strong>soaring oil prices,<\/strong> has <strong>urged producers to ease output cuts<\/strong> and help the <strong>global economic recovery.<\/strong><\/li>\n<\/ul>\n<ul>\n<li>One plan is to import oil from <strong>new producer Guyana<\/strong>.<\/li>\n<li>The country\u2019s top refiner <strong>Indian Oil Corporation (IOC)<\/strong> has also<strong> renewed its oil import contract with Russia.<\/strong><\/li>\n<li>\u00a0India hopes to resume <strong>Iranian oil imports this year.<\/strong><\/li>\n<\/ul>\n<table border=\"1\" cellspacing=\"0\" style=\"width:624px\">\n<tbody>\n<tr>\n<td style=\"background-color:#fff2cc; width:468.0pt\">\n<p><strong>About\u00a0 OPEC<\/strong><\/p>\n<ul>\n<li>The Organization of the Petroleum Exporting Countries (OPEC) is a<strong> permanent, intergovernmental Organization<\/strong>, created at the <strong>Baghdad Conference<\/strong> on September 10\u201314, 1960, by <strong>Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. <\/strong><\/li>\n<li>The OPEC Secretariat is the <strong>executive organ of the Organization of the Petroleum Exporting Countries (OPEC). Located in Vienna.<\/strong><\/li>\n<li>In 2016, OPEC allied with other<strong> top non-OPEC oil-exporting nations<\/strong> to form an e<strong>ven more powerful entity named OPEC+ or OPEC Plus.<\/strong>\n<ul>\n<li>OPEC+ came into existence, in part, to counteract other nations&#8217; capacity to produce oil, which could limit OPEC&#8217;s ability to control supply and price.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Objectives <\/strong>&#8211;\n<ul>\n<li>To <strong>coordinate and unify the petroleum policies<\/strong> of its <strong>Member Countries .<\/strong><\/li>\n<li><strong>To ensure t<\/strong>he <strong>stabilization of oil markets i<\/strong>n order to s<strong>ecure an efficient, economic and regular supply<\/strong> of <strong>petroleum to consumers,<\/strong> a steady income to producers and a fair return on capital for those <strong>investing in the petroleum industry.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><a href=\"https:\/\/www.thehindu.com\/business\/india-asks-refiners-to-diversify-cut-reliance-on-middle-east-oil-after-opec-decision\/article34028141.ece#:~:text=Russia%2C%20they%20added.-,India%20hopes%20to%20resume%20Iranian%20oil%20imports%20this%20year%2C%20according,in%20April%2C%20two%20sources%20said.\" target=\"_blank\" rel=\"noopener\">Source :TH<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In News &#8211;Most of the OPEC+ producers, led by the world\u2019s top exporter Saudi Arabia decided to curb oil supplies till April. About OPEC and its allies, a group known as OPEC+, agreed not to increase oil supply till April as they await a more substantial recovery in demand amid the coronavirus pandemic. After OPEC\u2019s [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14305,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[30],"class_list":["post-14304","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","tag-gs-2"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2023\/07\/1818691current-affairs (1).jpg","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/14304","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=14304"}],"version-history":[{"count":0,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/14304\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/14305"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=14304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=14304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=14304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}