We are all aware of what is going in the world today. Russia has conducted a special operation in Ukraine and this created a bit of chaos in the world. Is it going to escalate and grow further? Many people hope not. At the same time, we are all aware of the oil needs in the world today. We use oil and gas for transportation, to heat our homes, and for a wide variety of other use cases. It is certain that we will rely on oil and gas for a quite some time and it will likely extend into 2040 or 2050.
This seems a more reasonable time to make the transition from oil to renewable, now, OPEC plus make the decision to see if they will go from current exports to increasing production.
Here is what you need to know.
OPEC Plus Seeks to Keep Its Agreement with Russia
in The Organization of Petroleum Exporting Countries, more commonly known as the OPEC plus, was founded years ago. Since then, the members of OPEC have been changing now and then. Currently, this organization consists of 13 OPEC members and 10 of the world’s major non-OPEC oil-exporting nations.
The motive of OPEC is to regulate the supply of oil. This is because the irregularities in the supply of oil directly impact the price of oil all around the world. Saudi Arabia is one of the leading member countries of the OPEC and OPEC plus. This is also because it is one of the significant oil-producing countries worldwide.
OPEC Plus group and its members will meet on Wednesday to discuss the current situation and general oil concerns. This will happen just a few days after Russia has invaded Ukraine and sent crude soaring of $100 a barrel, at one point.
The crown prince of Saudia Arabia, named Mohammed Bin Salman andEmmanuel Macron discussed the situation, and he also discussed the circumstances of Ukraine and its effects on energy markets.
During this conversation, Prince Mohammed Emmanuel Macron assured that he would look forward to maintaining stability in the oil markets. Furthermore, he also assured commitment to the OPEC plus agreement.
Various Factors At Play
However, much more has to be discussed regarding OPEC plus agreement. Hence, a group of 23 members who are nationals of Saudi Arabia and Russia are likely to meet on Wednesday. The prime motive will be discussing the agreement, making amendments, and reviewing the current status.
In addition to this, the meeting will also review the current situation of Ukraine after Russia’s invasion. Hence, issues like imbalance and instability in oil markets will likely be addressed during the meeting. Apart from this, 13 members will be added during the meeting through teleconference. These members are from OPEC proper, and they will join alongside other members.
The discussion will likely affect oil prices worldwide.
SA Is a Key Leader
Saudi Arabia is viewed as a dominant figure when it comes to oil, oil markets, and oil companies. However, apart from Saudi Arabia being one of the original state members of OPEC, Russia is also playing a significant role amongst the other ten countries which make OPEC plus.