The recent situation of OPEC in the past, why OPEC is cutting production

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OPEC is the Organization of the Petroleum Exporting Countries.

OPEC is an international organization established in September 1960 by oil-producing countries in Asia, Africa and Latin America to coordinate the oil policies of member countries and oppose the exploitation and control of Western oil monopoly capital. The 14 member states are: Iraq, Iran, Kuwait, Saudi Arabia, Venezuela, Algeria, Ecuador, Gabon, etc.

It is headquartered in Vienna, Austria.

Presentation by the Organization of the Petroleum Exporting Countries

The Organization of the Petroleum Exporting Countries (OPEC) is abbreviated as "OPEC". An international organization established in September 1960 by the oil-producing countries of Asia, Africa and Latin America to coordinate the oil policies of member states and oppose the exploitation and control of Western oil monopoly capital. Its purpose is:

Coordinate and unify the oil policies of member countries, maintain the stability of the international oil market, and ensure that oil-producing countries receive stable incomes.

The highest authority is the Assemblies, which are composed of the delegations of the Member States, which are responsible for formulating the general policy, the executive body is the Council, and the day-to-day work is handled by the Secretariat. An economic committee has also been established to assist in the maintenance of oil stability. Since its establishment, the organization has persistently struggled against Western oil monopoly capital and made significant progress in improving oil quality.

Qatar withdrew from the Organization of the Petroleum Exporting Countries (OPEC) in January 2019. On January 1, 2020, Ecuador withdrew from the Organization of the Petroleum Exporting Countries.

1.The oil market is sluggish.

In recent years, the oil market has been in a downturn, and factors such as the global economic slowdown, intensified international energy competition, and the rise of new energy have all led to a recession in the oil market.

2.Excess ** pressure.

OPEC countries have always been an important player in oil**, however, due to various reasons, OPEC countries' oil production has never been able to meet the demand of the market, so they need to make up for the production gap through imports. At this time, there is a significant surplus of oil in the world, resulting in continued oil prices.

3.Reduce the amount to maintain.

In the face of the downturn in the oil market and the pressure of surplus**, OPEC decided to adopt a strategy of reducing production and reducing the amount of oil**, thereby bringing stability to the market. This agreement is also aimed at maintaining oil prices and bringing them within a reasonable range.

4.Improving the economic situation of OPEC countries.

The economic situation of many OPEC countries is still relatively fragile, and they hope to increase oil ** and increase national revenues by cutting production. This can enhance the country's economic strength and lay the foundation for economic restructuring and development.

5.Reduced environmental stress.

The development of the oil industry has a great impact on the environment, and OPEC countries are aware of this and hope to reduce environmental pressure and promote the sustainable development of the oil industry through this production reduction agreement.

6.Good for businesses and consumers.

While the production cut will make oil prices**, it is good news for some oil companies and consumers. Corporate earnings are good news for employees and shareholders alike, while consumers mean they can reduce the financial pressure on oil prices while maintaining oil demand.

7.Maintain international relations.

OPEC countries' measures to cut production have an important impact on the international oil market, and if the lack of cooperation between OPEC members leads to oil, then the world economy will suffer a catastrophic blow. Therefore, OPEC is also contributing to the world economy by reducing production to maintain international relations.

8.Improve the quality and quality of **.

The OPEC production cut plan is also aimed at improving the quality and quality of oil**, so that more countries can list OPEC's oil** as their first choice. These include countries such as China, India, South Korea and Japan, which have a growing demand for oil markets, and OPEC's ability to provide high-quality oil** can boost confidence in OPEC.

Summary. These are the main reasons for OPEC's production cuts, which are of great significance to OPEC countries and international markets. The reduction in production has allowed the management and optimization of oil**, thereby maintaining the stability and healthy development of the oil market.

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Analysis: Organization of the Petroleum Exporting Countries.

organization of the petroleum exporting countries,opec

Translated as OPEC. It is an international professional organization formed by some oil-producing countries in Asia, Africa and Latin America for the control of international oil monopoly capital, the defense of oil resources and the protection of national interests. It was established in September 1960 and its main organs are the General Assembly, the Council and the Secretariat.

The headquarters are located in Vienna. As of 1988, there were 13 member states. Five countries, including Iraq, Iran, Saudi Arabia**, Kuwait and Venezuela, are the founding countries.

The other members are: Qatar, Algeria, Ecuador, Gabon, Indonesia, Libya, Nigeria, *United Arab Emirates. The property rights, extraction, refining and operation of oil in these countries have long been manipulated by foreign monopoly capital.

In the 70s, in order to protect the oil revenues of member countries, the organization repeatedly forced Western oil companies to sign agreements to raise oil prices, and unilaterally made decisions to raise oil prices, so as to gain the dominance of regulating the world oil market, which once plunged Western countries into an oil crisis and played a positive role in promoting the reform of the old international economic order. After entering the 80s, due to the sharp decline in the demand of the world oil market, the organization has successively adopted measures such as "reducing production and guaranteeing prices" and "reducing prices and guaranteeing production", and was forced to continuously reduce oil ** and limit the output of member countries, so that the organization gradually lost the right to regulate oil **. This trend cannot be reversed in the short term.

In addition to the 13 OPECs mentioned above, there are also regional international oil organizations. For example, the Latin American Association of Petroleum Mutual Aid was established in October 1965 and the Organization of Petroleum Exporting Countries (OPEC) was established in January 1968. During the Middle East war in October 1973, the latter member states used oil as a tool to oppose Israel and its supporters by raising prices, reducing production, embargoing, increasing shares, and nationalizing, which had a major impact on international politics.

It also established the International Development Association in 1976 to provide economic and financial assistance to other developing countries, giving a strong impetus to South-South cooperation.

OPEC is not a figure, but an organization of the Petroleum Exporting Countries.

Founded in September 1960 by oil-producing countries in Asia, Africa and Latin America to coordinate the oil policies of member states, oppose the exploitation of Western oil monopoly capital, and control the frontal hunger, Europe and Sempec was established.

OPEC's purpose is to coordinate and unify the oil policies of member countries, maintain the stability of the international oil market, and ensure that oil-producing countries receive stable revenues. Since its establishment, the organization has persistently fought against the Western oil monopoly capital, and has made significant progress in raising the oil industry and nationalizing the oil industry.

The significance of the establishment of OPEC

OPEC members analyze the current situation and market trends**, for example, in previous conferences, OPEC members have separately decided to increase or decrease the organization's overall oil production in order to maintain the stability of oil** and provide consumers with stable short-, medium- and long-term oil**.

Without OPEC, global oil security would be even more volatile than it is now. Some people may say that in the world of energy transition, the development and use of new energy sources have caused oil to quickly lose its relevance, but in fact, oil has not lost its relevance so quickly. It will remain the absolute power of the silver retreat for decades to come.

Without OPEC, as OPEC members are free, they are free to produce as much oil as they want, and the incentive for oil companies to invest in new oil production to secure the future may be diminished, which will increase long-term insecurity.

OPEC was founded on September 14, 1960.

Chinese name: Organization of the Petroleum Exporting Countries.

On November 6, 1962, OPEC was registered with the United Nations Secretariat as a formal international organization with the purpose of coordinating and unifying the oil policies of member countries and safeguarding their respective and common interests.

I drank high that day! Wait until I think about it!

Oshanopek was founded in Baghdad, the capital of Iraq, on September 14, 1960.

There are five founding members: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.

On November 6, 1962, OPEC was registered with the United Nations Secretariat as an official international organization.