Opec+

The term OPEC+ refers to an alliance between the Organisation of the Petroleum Exporting Countries (OPEC) and a group of non-OPEC oil-producing nations that collaborate to coordinate and stabilise global oil markets. Established in the wake of the 2014 oil price collapse, OPEC+ has emerged as one of the most influential coalitions in the energy sector, shaping international oil supply strategies and price dynamics through coordinated production policies.

Background and Formation

OPEC was founded in 1960 in Baghdad by five countries — Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela — with the aim of regulating oil production and securing fair and stable prices for petroleum producers. Over the decades, OPEC expanded its membership and influence, becoming a central player in the global oil market. However, during the early 2010s, the rise of shale oil production in the United States led to a supply glut, causing oil prices to plummet from over $100 per barrel in 2014 to below $30 in early 2016.
In response to this crisis, OPEC sought cooperation with non-member countries to manage supply levels more effectively. This collaboration resulted in the formation of OPEC+ in December 2016, when OPEC members joined forces with 10 major non-OPEC producers, including Russia, Mexico, Kazakhstan, Oman, and Azerbaijan. Together, these countries account for around half of the world’s crude oil production, giving OPEC+ substantial control over global energy markets.

Member Countries and Structure

OPEC+ consists of 23 oil-producing nations — 13 OPEC members and 10 non-OPEC partners. Key members include:

• OPEC countries: Saudi Arabia, Iraq, Iran, the United Arab Emirates, Kuwait, Nigeria, Angola, Algeria, Libya, Venezuela, Congo, Equatorial Guinea, and Gabon.
• Non-OPEC countries: Russia, Kazakhstan, Azerbaijan, Mexico, Oman, Bahrain, Brunei, Malaysia, Sudan, and South Sudan.

The group’s operational framework is based on regular ministerial meetings where members review market conditions and agree on collective production targets. Decisions are typically made by consensus, although Saudi Arabia and Russia are regarded as the leading actors, often setting the tone for policy decisions.
The Joint Ministerial Monitoring Committee (JMMC) and the Joint Technical Committee (JTC) were established to monitor compliance with production agreements and assess market trends.

Objectives and Functioning

The core objective of OPEC+ is to maintain stability in the global oil market by aligning production levels with demand trends. By adjusting supply through collective decisions, the group seeks to prevent extreme fluctuations in oil prices that can destabilise economies.
Key goals include:

• Balancing global oil supply and demand to ensure stable prices.
• Reducing market volatility caused by geopolitical or economic factors.
• Supporting economic sustainability of oil-producing nations.
• Coordinating production cuts or increases based on market assessments.

Unlike OPEC alone, which often struggled to influence prices due to the actions of non-member producers, OPEC+ combines a much larger share of global production, allowing it to exert stronger influence on the market.

Major Interventions and Agreements

Since its inception, OPEC+ has implemented several landmark production adjustment agreements that have significantly impacted the global energy landscape.

• 2016 Production Cut Agreement: The first coordinated action under OPEC+ involved a combined production cut of 1.8 million barrels per day (bpd) to stabilise prices after the 2014–2016 crash. This move helped oil prices recover from record lows.
• COVID-19 Response (2020): During the pandemic, global oil demand fell sharply as travel and industrial activity halted. In April 2020, OPEC+ agreed to an unprecedented cut of 9.7 million bpd, the largest in history, to prevent a total market collapse. The coordinated effort helped stabilise prices after they briefly turned negative in the United States.
• Post-Pandemic Adjustments: As economies began to recover in 2021–2022, OPEC+ gradually eased production cuts to meet rising demand, while continuing to manage supply in a phased manner.
• Recent Developments (2023–2025): The group has continued to implement voluntary production cuts amid concerns of global recession, fluctuating demand from China, and Western sanctions on Russia. Saudi Arabia and Russia, in particular, have maintained additional voluntary cuts to support price stability around $80–$90 per barrel.

Economic and Geopolitical Influence

OPEC+ plays a pivotal role in global economics, as oil prices directly affect inflation, trade balances, and the cost of living across the world. The group’s decisions often have immediate consequences for both producer and consumer nations.

• For producers: Higher oil prices enhance national revenues, particularly for economies reliant on oil exports.
• For consumers: Increased prices can drive inflation and slow economic growth, particularly in energy-importing countries.

Geopolitically, OPEC+ represents a rare platform where traditional rivals — such as Saudi Arabia and Russia — collaborate on common economic interests. The alliance has also demonstrated resilience in maintaining cooperation despite differing political agendas. However, internal tensions occasionally arise, particularly when member states disagree on production quotas or compliance levels.

Challenges and Criticism

OPEC+ faces several challenges that question its long-term sustainability:

• Divergent national interests: Members vary widely in economic dependence on oil revenues and production capacities, leading to disputes over quotas.
• Compliance issues: Some countries have historically failed to meet agreed production targets, undermining group discipline.
• External pressure: Major oil-consuming countries, notably the United States, have criticised OPEC+ for keeping prices artificially high. Western nations have occasionally accused the group of using oil as a geopolitical tool.
• Energy transition: The global shift towards renewable energy and carbon neutrality threatens to diminish OPEC+’s influence over time. As the demand for fossil fuels plateaus, the group faces the challenge of remaining relevant in a decarbonising world.

Environmental groups have also criticised OPEC+ for slowing progress towards clean energy adoption, arguing that coordinated output control supports continued fossil fuel dependence.

Impact on Global Markets

OPEC+ decisions are closely watched by financial markets, as oil remains a key global commodity. Production adjustments affect global supply chains, currencies, and stock indices. For instance, an output reduction typically strengthens oil-exporting countries’ currencies and benefits energy companies, whereas it raises costs for importers.
In addition, OPEC+ has increasingly coordinated with the International Energy Agency (IEA) and other international organisations to share data and market outlooks, reflecting an effort to promote transparency and predictability in policy actions.

Future Outlook

The future of OPEC+ depends on its ability to adapt to evolving energy landscapes and political realities. While the alliance has proven remarkably durable, it faces an uncertain future amid rising renewable investments, climate commitments, and changing consumption patterns.