Is it reasonable for a highly efficient producer to reduce production while continuing to produce with low efficiency? This is a twisted logic. If I reduce, what happens to my market share? The price will go up and the Russians, the Brazilians, the American shale oil producers will take my share. We want to tell the world that highly efficient producing countries are the ones that deserve market share. This is the principle of operation in all capitalist countries. One thing is certain: current prices [about $60 a barrel] do not support all producers. OPEC says its members together own about four-fifths of the world`s proven oil reserves, while accounting for two-fifths of global oil production. Members differ in many ways, including the size of oil reserves, geography, religion, and economic and political interests. Some members, such as Kuwait, Saudi Arabia and the United Arab Emirates, have very large oil reserves per capita; They are also relatively strong financially and therefore have considerable flexibility to adjust their production. Saudi Arabia, which has the second largest reserves and a relatively small (but rapidly growing) population, has traditionally played a dominant role in determining total production and prices. Venezuela, on the other hand, has the largest reserves, but produces only a fraction of what Saudi Arabia produces. On November 30, 2017, OPEC agreed to continue withholding 2% of the world`s oil supply.

This continued the policy adopted by OPEC on September 30. November 2016, when it agreed to reduce production by 1.2 million barrels. In January 2017, it would produce 32.5 mbd. This figure remains above the 2015 average level of 32.32 mbpd. The agreement excluded Nigeria and Libya. It gave Iraq its first quotas since the 1990s. Russia, which is not a member of OPEC, has voluntarily agreed to cut production. In 1968, OPEC issued the Declaratory Declaration of Oil Policy in Member Countries, which aimed to enshrine the right of each nation to full sovereignty over its natural resources for the purposes of national enrichment and development. It was an important statement as the decolonization movement was in full swing and many OPEC countries were former colonies eager to resist the dominance of powerful oil companies in the market.

These companies were powerful multinationals, mainly owned by rich countries. Meanwhile, OPEC`s membership expanded, and in 1969, five other member countries joined OPEC: when OPEC was founded in 1960, its main goal was to prevent its concessionaires – the world`s largest oil producers, refiners and traders – from lowering the price of oil they had always declared or «published.» OPEC members sought greater control over oil prices by coordinating their production and export policies, even though each member retained ultimate control of its own policies. In the 1960s, OPEC managed to prevent price declines, but its success encouraged increases in production, leading to a gradual decline in nominal (non-inflation-adjusted) prices from $1.93 per barrel in 1955 to $1.30 per barrel in 1970. In the 1970s, the main objective of OPEC members was to ensure complete sovereignty over their oil resources. As a result, several OPEC members have nationalized their oil reserves and changed their contracts with major oil companies. Carlos arranged bus and plane trips for his team and 42 of the initial 63 hostages with stops in Algiers and Tripoli, and planned to fly to Baghdad, where Yamani and Amuzegar were to be killed. The 30 non-Arab hostages were released in Algiers, with the exception of Amuzegar. Other hostages were released during another stop in Tripoli before returning to Algiers. With only 10 hostages left, Carlos had a phone conversation with Algerian President Houari Boumédienne, who informed Carlos that the death of the oil ministers would result in an attack on the plane. Boumédienne also had to offer Carlos asylum at that time and possibly financial compensation for not fulfilling his mission. Carlos expressed regret that he could not murder Yamani and Amuzegar, and then he and his comrades left the plane. All hostages and terrorists left the situation two days after it began.

[43] The Organization of the Petroleum Exporting Countries (OPEC, /ˈoʊpɛk/ OH-pek) is an intergovernmental organization of 13 nations. Founded on 14. September 1960 in Baghdad of the first five members (Iran, Iraq, Kuwait, Saudi Arabia and Venezuela), it has had its headquarters in Vienna, Austria since 1965, although Austria is not an OPEC member state. As of September 2018 [update], the 13 member countries accounted for about 44% of global oil production and 81.5% of the world`s «proven» oil reserves, giving OPEC a major impact on global oil prices, previously determined by the «Seven Sisters» group of multinational oil companies. .