OPEC+(Current Events of National And International importance)
OPEC+(Current Events of National And International importance)
Why In News:
OPEC+ decided on its fourth oil quota hike since the Hormuz closure — a significant geopolitical development affecting global oil supply chains.
What is OPEC+?
OPEC (Organisation of the Petroleum Exporting Countries): Founded in 1960.
Original members: Iran, Iraq, Kuwait, Saudi Arabia, Venezuela. Currently 11 members.
Headquarters: Vienna, Austria.
OPEC+: A broader alliance of OPEC members + 10 other major oil producers (including Russia, Mexico, Kazakhstan). Formed in 2016 to coordinate production cuts in response to oversupply.
OPEC+ produces approximately ~40% of global oil supply.
Key decisions: Production cuts or hikes (quota changes) to influence global oil prices.
The Strait of Hormuz — Strategic Choke Point:
The Strait of Hormuz is a narrow waterway between Oman and Iran, connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea.
Approximately 20–21 million barrels per day (Mbpd) — nearly 20% of global daily oil trade — passes through the Strait of Hormuz.
Any closure or disruption at Hormuz directly impacts India (which imports ~85% of its crude oil, much of it from the Middle East), Europe, Japan, South Korea, and China.
India's Energy Security Context:
Strategic Petroleum Reserve (SPR): India maintains underground SPRs at Visakhapatnam, Mangaluru, and Padur (total ~5.33 million tonnes) — roughly 9–10 days' worth of net imports.
IEA Membership: India is not a full member of the International Energy Agency (IEA — an OECD-linked body) but has an association agreement and cooperates on energy security.