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Organisation of Petroleum Exporting Countries

OPEC is an intergovernmental organization formed in 1960 consisting of 12 oil producing countries. Its principal objectives are to coordinate oil policies and production among member countries to stabilize oil prices and ensure a steady supply of oil to consuming countries. Fluctuations in international crude oil prices set by OPEC significantly impact India's economy, as India imports much of its oil from OPEC members. Higher global oil prices can reduce India's economic growth and widen its current account deficit.

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Anamika Sonawane
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24 views

Organisation of Petroleum Exporting Countries

OPEC is an intergovernmental organization formed in 1960 consisting of 12 oil producing countries. Its principal objectives are to coordinate oil policies and production among member countries to stabilize oil prices and ensure a steady supply of oil to consuming countries. Fluctuations in international crude oil prices set by OPEC significantly impact India's economy, as India imports much of its oil from OPEC members. Higher global oil prices can reduce India's economic growth and widen its current account deficit.

Uploaded by

Anamika Sonawane
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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ORGANISATION OF

PETROLEUM
EXPORTING COUNTRIES

OPEC (ORGANISATION OF
PETROLEUM EXPORTING COUNTRIES)
It is a permanent intergovernmental organization.
OPEC was formed at a meeting held on September 14,
1960 in Baghdad, Iraq.
Consisting of 12 oil producing and exporting countries.
Oil is the main marketable commodity and foreign
exchange earner.
OPEC is currently headquartered at Vienna, Austria.

OBJECTIVES OF OPEC

The organizations principal objectives are:


To co-ordinate and unify the petroleum policies of the
Member Countries and to determine the best means for
safeguarding their individual and collective interests.

To seek ways and means of ensuring the stabilization of


prices in international oil markets, with a view to
eliminating harmful and unnecessary fluctuations.

To provide an efficient economic and regular supply of


petroleum to consuming nations and a fair return on
capital to those investing in the petroleum industry.

IMPACT OF OPEC ON INDIA


India Imports its crude oil largely from Saudi
Arabia, Iraq, Iran, Angola, Nigeria and many more.
The top 5 oil exporting countries to India are
members of OPEC.
As Indian crude oil import is the part of bulk
imports in the balance of payments (BoP), the
fluctuations in international crude oil prices tends
to fluctuate the domestic economys current account
balance, foreign exchange reserves, inflation etc.
According to Goldman Sachs report, a rise in global
oil prices by $10 a barrel would reduce India's
economic growth by 0.2 percentage points and also
affect the country's current account deficit.

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THANK YOU

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