OPEC

·         On June 30, 2008 Oil cartel OPEC rejected  call of India for regulating crude prices through a price band, saying the market was the best judge and forecast prices climbing to $ 170 a barrel on summer demand in the US.

·         Stung by high oil prices driving inflation to 13-year high of 11.42 per cent, finance minister P. Chidambaram had, at a meeting of energy ministers in Jeddah last week, asked the Organisation of Petroleum Exporting Countries (OPEC) to operationalise a price band mechanism, wherein, crude prices move within a specified range.

Mission IAS’2009

·         OPEC president Chakib Khelil  said “Producing and consuming nations never agree on any price... they never agreed with (OPEC) price band (that operated between 2000 and 2005). Then we did away with the price band... we are never going to agree (on the price band)”

·         India has blamed speculators for the rise in crude prices that have touched an all time high of $ 142.99 a barrel, but western oil firms pinned it on demand-supply mismatch.

·         On June 30, 2008 Crude oil prices surged to a record high above $143 per barrel as tensions simmered between Israel and Iran over  nuclear programme of Tehran and the dollar hit three-week lows against the euro before steadying.

• OPEC consists of oil-producing and exporting countries, from Africa, Asia, the Middle East, and Latin America.
• The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
• The five Founding Members were later joined by eight other Members:
  • Qatar (1961);
  • Indonesia (1962);
  • Socialist Peoples Libyan Arab Jamahiriya
  • (1962);
  • United Arab Emirates (1967);
  • Algeria (1969);
  • Nigeria (1971);
  • Ecuador (1973–1992) and
  • Gabon (1975–1994).
• OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence.
• This was moved to Vienna, Austria, on September 1, 1965.
• OPEC's objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.
• The OPEC Conference of Ministers meets in ordinary session twice a year, and is responsible for the formulation of the general policy of the Organization.