China non-committal to Washington's oil release, OPEC+ unmoved
- The United States has made the largest commitment for a reserves release at 50 million barrels of pre-approved sales along with loans to the market.
- China, the world’s largest crude importer, was non-committal about its intentions to release oil from its reserves while OPEC producers were not considering changing tactics in light of the U.S. action.
What is the Opec+?
- Opec+ refers to the alliance of crude producers, who have been undertaking corrections in supply in the oil markets since 2017.
- OPEC plus countries include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.
What are their goals?
- The Opec and non-Opec producers first formed the alliance at a historic meeting in Algiers in 2016.
- The aim was to undertake production restrictions to help resuscitate a flailing market.
What is OPEC?
- The Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq, with the signing of an agreement in September 1960 by five countries namely Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They were to become the Founder Members of the Organization.
- It is a permanent, intergovernmental organization.
- Currently, the Organization has a total of 14 Member Countries.
- OPEC’s objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.
- It is headquarteredin Vienna, Austria.
- OPEC membership is open to any country that is a substantial exporter of oil and which shares the ideals of the organization.