OPEC+, established in 1960, is a significant global oil coalition that exerts considerable influence over international oil prices by regulating production levels among its member nations. Initially founded as the Organization of the Petroleum Exporting Countries (OPEC) in Baghdad by Iraq, Iran, Kuwait, Venezuela, and Saudi Arabia, the group aimed to coordinate oil policies and maintain stable, fair pricing.
Today, OPEC comprises 12 member states, predominantly from the Middle East, with the United Arab Emirates joining in 1967. In a major development in 2016, OPEC broadened its reach by forming an alliance with non-member oil producers, including Russia, creating the expanded entity known as OPEC+. This coalition now accounts for nearly half of the world’s oil production, granting it substantial control over global supply levels.
Over time, several countries have departed from the bloc, such as Qatar in 2019, Ecuador in 2020, and Angola in 2024. Notably, the UAE recently announced its decision to leave OPEC effective May 1, signaling another significant shift in the group’s composition.
Historically, OPEC+ has influenced oil prices by strategically adjusting production—either reducing or increasing output—to stabilize the global market. However, critics contend that the group indirectly manipulates prices, an accusation that OPEC has consistently rejected.
The bloc’s power was particularly evident during major global incidents, including the 1973 oil embargo, which triggered a steep increase in oil prices and caused fuel shortages in several countries, notably the United States.
Currently, OPEC+ remains a dominant force in the global energy sector, although its market share faces challenges from rising production in countries like the United States. Despite these pressures, the coalition continues to represent a significant portion of worldwide crude oil exports and remains a pivotal factor in shaping oil prices globally.
