ORGANIZATION OF THE

PETROLEUM EXPORTING
COUNTRIES (OPEC) & OPEC+
.
OPEC Secretary General

HE Mohammad Sanusi Barkindo, OPEC Secretary General

OPEC AND OPEC+

The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental
organization of 13 countries. Founded on 14 September 1960 in Baghdad by the first five
members (Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela), it has since 1965 been
headquartered in Vienna, Austria, although Austria is not an OPEC member state. As of
September 2018, the 13 member countries accounted for an estimated 44 percent of
global oil production and 81.5 percent of the world's "proven" oil reserves, giving OPEC
a major influence on global oil prices that were previously determined by the so-called
"Seven Sisters" grouping of multinational oil companies. A larger group called OPEC+
was formed in late 2016 to have more control on the global crude oil market.

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OPEC SHARE OF WORLD CRUDE OIL RESERVES, 2018

According to current estimates, 79.4% of the world's proven oil reserves are located in OPEC Member
Countries, with the bulk of OPEC oil reserves in the Middle East, amounting to 64.5% of the OPEC
total.

OPEC Member Countries have made significant additions to their oil reserves in recent years, for
example, by adopting best practices in the industry, realizing intensive explorations and enhanced
recoveries. As a result, OPEC's proven oil reserves currently stand at 1,189.80 billion barrels.

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OPEC BASKET PRICE YEARLY

OPEC & OPEC+ 4

OPEC+
In 2016, OPEC allied with other top non-OPEC oil-exporting nations to form an even more
powerful entity named OPEC+ or OPEC Plus. OPEC plus countries include Azerbaijan,
Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.

The cartel's goal is to exert control over the price of the precious fossil fuel known as crude oil.
OPEC+ controls over 50% of global oil supplies and about 90% of proven oil reserves. This
dominant position ensures that the coalition has a significant influence on the price of oil, at
least in the short term. Over the long term, its ability to influence the price of oil is diluted,
primarily because individual nations have different incentives than OPEC+ as a whole.

The Organization of the Petroleum Exporting Countries Plus (OPEC+) is a loosely affiliated
entity consisting of the 13 OPEC members and 10 of the world’s major non-OPEC oil-exporting
nations. OPEC+ aims to regulate the supply of oil in order to set the price on the world market.

OPEC+ came into existence, in part, to counteract other nations' capacity to produce oil, which
could limit OPEC's ability to control supply and price.

14th OPEC and non-OPEC Ministerial Meetings

Place - Vienna, Austria
Date - 04 Mar 2021
The 14th Meeting of OPEC and non-OPEC Ministers took place via video conference on
Thursday March 4, 2021, under the Chairmanship of HRH Prince Abdul Aziz bin Salman, Saudi
Arabia’s Minister of Energy, and Co-Chair HE Alexander Novak, Deputy Prime Minister of the
Russian Federation.
The next meetings of the JMMC and OPEC and non-OPEC Ministers are scheduled for 31 March and
1 April 2021, respectively.

OPEC Output and Forecast

Recovery in oil demand will be focused on the second half of the year as the impact of the
pandemic lingers as a headwind for the group and its allies in supporting the market.

In a monthly report, the Organization of the Petroleum Exporting Countries said demand
will rise by 5.89 million barrels per day (bpd) in 2021, or 6.5%, up slightly from last month.
But the group cut its forecasts for the first half.

“Total oil demand is foreseen to reach 96.3 million bpd with most consumption appearing
in the second half,” OPEC said in the report. “This year’s demand growth will not be able
to compensate for the major shortfall from 2020 as mobility is forecast to remain impaired

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throughout 2021.” The latest forecasts could bolster cautious views among OPEC and its
allies, known as OPEC+, on how quickly to unwind more of last year’s record oil output
cuts. OPEC+ last week decided to mostly extend current cuts into April.

OPEC raised its forecast of world economic growth this year to 5.1% from 4.8%, although
it sees the pandemic’s impact lingering in the first half.

OPEC oil output in February as most OPEC+ members returned to output restraint and
Saudi Arabia pledged a voluntary cut of 1 million bpd in February and March, which last
week was extended into April. OPEC said its output fell by 650,000 bpd to 24.85 million
bpd, driven by the Saudi cut. Riyadh told OPEC it made almost all of the reduction,
lowering production by 956,000 bpd to 8.147 million bpd.

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