New Delhi: A handful of countries in the world are running a game of petrol-diesel and gas. The economy of these countries runs on crude oil and natural gas, so these countries make the world on their own. There is an organization of these countries named OPEC. OPEC, the Organization of Petroleum Exporting Countries, was formed so that oil prices could be negotiated and production should be kept in such a way that price control was maintained.
These countries are members of the organization
The OPEC organization has 13 member countries - Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates and Venezuela. America is also a very large oil producing country but it is not involved in the organization's fraud. Earlier Russia was also not in it, but now it has become an ally of this faction indirectly.
OPEC's Dadagiri came to the fore
OPEC's grandeur came to the fore during the 1973 Arab-Israeli War when Arab members of OPEC imposed oil restrictions against the US for helping Israel and halted oil supplies to the US. This move of 73 made the OPEC's weight forever. He had shown that he has a Brahmastra in the form of oil, in which everyone will have to bow down.
OPEC follows a strategy of pricing over volume, which means that the price will be fixed according to the amount of oil released. That is, more production means less price and less production means more price. In this system, its prices are linked to the production of oil.
Effect of oil restriction
The effect of the 1973 oil ban was that the seller had complete control over the oil market rather than the buyer. Seven Sisters controlled the oil market before 73. These were not sisters, but rather seven oil companies from western countries that operated most of the oil fields. After 1973, the balance of power leaned towards OPEC countries instead of these seven companies.
Later several events in the world helped OPEC maintain control over oil prices, including the disintegration of the Soviet Union. The breakup of the Soviet Union had many effects, for many years Russia's oil production was disrupted, the currencies of many countries were devalued and all of them had an impact on the demand for oil. But OPEC's countries continued to produce oil production at the same level, with no impact on the breakdown of the Soviet Union and its effects.
Rise of opac plus
In 2016, a new faction was formed in the oil producing countries which was named OPEC Plus. Poec Plus includes ten other oil exporting countries, such as Russia and Kazakhstan, in addition to OPEC members. Since there is no cheaper and accessible alternative to petroleum products, OPEC Plus continues to have an impact on oil prices.
When the demand for oil in the world decreases, then OPEC countries reduce their production quota, the result is that the oil reaches the market less and prices go up, so that the producing countries do no harm. Oil prices crashed during the Corona era itself as economic activities were halted, traffic was closed and economic recession came.
In such a situation, OPEC and their allies made a historic cut in oil production, but still the price of crude oil fell to the lowest level of twenty years.
Worst example venezuela
Venezuela has one of the worst examples of oil politics countries. This country is a member of OPEC and sells the cheapest oil in the world. As of today, L-liter petrol in Venezuela is 1 rupees 45 paise. But it is the condition of the economy of this country that buying a liter of petrol is also difficult.
However, the thing to understand is that with the production and price of petrol and diesel, the common man will not be able to compete. There is only one solution - take the option of petrol and diesel as quickly as possible. By doing this, blackmailing of oil can be got rid of.