Context:

• The Organization of the Petroleum Exporting Countries and allies (OPEC+) are likely to extend and may even deepen oil supply cuts into next year.

IEA Forecasts 2024 Oil Surplus Despite OPEC+ Efforts

• The International Energy Agency (IEA) expects a surplus oil supply in 2024, even if OPEC+ nations extend their cuts into next year
• Decline in Oil Price: Since late September 2023, oil prices have witnessed a nearly 20% decline with the recent drop sparked by a significant increase in US crude inventories and production remaining at historic highs.
• OPEC+: Saudi Arabia, Russia and other members have pledged total oil output cuts of about 5 million barrels per day (bpd), or about 5% of daily global demand. 

Evolution of OPEC: From Founding Members to Global Collaboration with OPEC+

• Founding Members: OPEC was formed in 1960 by Iraq, Iran, Kuwait, Saudi Arabia, and Venezuela. 
• Headquarters: OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence. This was moved to Vienna, Austria in 1965. 
• Objective: OPEC regularly meets to set oil production targets and coordinate output to help manage global oil prices for the entire group.
• Members: Apart from founding members, other countries who joined OPEC include Algeria, Angola,Congo, Equatorial Guinea, Gabon, Libya, Nigeria, and United Arab Emirates.
• OPEC+: In 2016, largely in response to falling oil prices driven by significant increases in U.S. shale oil output, OPEC signed an agreement with 10 other oil-producing countries (including Russia) to create OPEC+. 

News Source: Reuters