What is OPEC+ and how does it affect oil prices?

OPEC+ is a larger group consisting of OPEC members and other oil-producing countries, formed in late 2016 to better control the global crude oil market.

The alliance controls about 44% of global oil production , making it one of the most influential forces in global energy markets. By coordinating production quotas among its members, OPEC+ can significantly influence the supply of oil available to world markets—and therefore its price.

Key Points

• OPEC+ extends the original OPEC cartel by adding major non-OPEC producers, most notably Russia
• The alliance uses production quotas to manage oil supply and influence global prices

OPEC+ was created in 2016 in response to dramatically falling oil prices driven by significant increases in U.S. shale oil output, with Russia as a key member producing 13% of the world's oil

• Production decisions by OPEC+ can raise or lower oil prices by creating scarcity or abundance in the market
• Compliance with quotas varies among members, which can undermine the group's effectiveness

Understanding OPEC+

To understand OPEC+, you first need to understand OPEC. The Organization of the Petroleum Exporting Countries (OPEC) was founded on 14 September 1960 in Baghdad by five members: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.

OPEC was formed with the explicit aim of setting the global oil price by regulating the supply of oil, and its goal remains the same today, achieved by setting production quotas for member countries.

As of 2026, current OPEC members are Algeria, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, the Republic of the Congo, Saudi Arabia, and Venezuela.

The UAE announced it was withdrawing from OPEC and OPEC+ effective May 1, 2026. The organization's influence stems from the fact that an estimated 79.5 percent of the world's proven oil reserves are located within OPEC nations.

By the 2010s, OPEC faced a significant challenge. Since 2010, OPEC had difficulties controlling oil prices because of the emergence of a new exporter, namely the United States, as the shale revolution turned the US from a net importer to a net exporter. This prompted OPEC to seek cooperation with other major producers outside the organization.

In late 2016, OPEC signed a declaration of cooperation with ten additional countries and, most importantly, Russia.

According to the U.S. Energy Information Administration, OPEC+ total includes OPEC members subject to OPEC+ agreements plus Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan, and Sudan. This expanded alliance became known as OPEC+.

How It Works

OPEC+ influences oil prices through a coordinated production management system:

1. Setting Production Quotas: OPEC+ sets limits on the amount of crude oil each member country is allowed to produce to manage oil supply, stabilize prices, and balance the interests of member countries in the global oil market.

The production quota for each member is set based on the reserve capacity and production of that member and annual demand.

2. Coordinating Supply Decisions: The actions of the OPEC+ agreement are largely driven by coordination between OPEC and Russia , given Russia's significant production capacity. Members meet regularly to assess market conditions and adjust production targets accordingly. At Joint Technical Committee meetings, technical experts discuss the overall condition of the oil market, while Joint Ministerial Monitoring Committee meetings are held bi-monthly to monitor compliance with quotas, and Ministerial Meetings take place every six months where policies on quotas and target prices are decided.

3. Influencing Market Balance: OPEC+ oil production quotas directly impact global oil prices by controlling the supply of crude oil available in the market—when OPEC+ restricts production through quotas, it reduces supply, which can lead to higher prices if demand remains constant or increases, while raising production limits can lead to an oversupply of oil in the market, driving prices down.

Why It Matters

OPEC+ decisions have far-reaching consequences for the global economy. According to the U.S. Energy Information Administration, OPEC countries collectively produce about 35% of the world's crude oil, and OPEC's oil exports account for around 50% of all the oil traded internationally, giving OPEC considerable leverage to significantly influence global oil prices. When OPEC+ is added to the equation, the group's influence expands considerably.

Oil prices affect virtually every sector of the economy, from transportation costs to manufacturing expenses to heating bills. When OPEC+ cuts production, reduced supply can push prices higher, increasing costs for consumers and businesses worldwide. Conversely, when OPEC+ increases production, the additional supply can help moderate prices. OPEC's spare crude oil production capacity—readily available, additional oil production that can quickly be brought to market—also influences global crude prices and serves as an indicator of oil market tightness, defined as production that can be brought online within 30 days and sustained for at least 90 days.

However, OPEC+ faces ongoing challenges. OPEC+ faces challenges in enforcing its production quotas among member countries due to differing national interests and economic pressures, as some countries may prioritize immediate economic gain over collective goals, leading them to produce beyond their set quotas, while geopolitical tensions can influence compliance, undermining OPEC's ability to effectively manage supply and maintain stable prices.

Quota evasion degrades both the bloc's overall ability to maintain stable markets as well as the market's confidence in its stated quotas.

Related Terms

• Production Quota: A limit on the amount of oil a member country is allowed to produce, used by OPEC+ to manage global supply levels.

• Spare Capacity: The volume of oil production that can be brought online quickly to respond to supply disruptions or market needs, primarily held by Gulf producers like Saudi Arabia.

• Declaration of Cooperation: The formal agreement established in 2017 among OPEC+ member countries that has been extended multiple times , providing the framework for coordinated production management.

Frequently Asked Questions

Why was OPEC+ created instead of just expanding OPEC membership?

By the early 2010s, Saudi Arabia was open to Russian membership in OPEC, but Russia, seeing itself as a rising power as a member of the G8 and World Trade Organization, was unwilling to cede influence or align its policies by becoming a formal OPEC member. The OPEC+ framework allowed Russia and other producers to coordinate with OPEC without formally joining the organization, preserving their independence while enabling cooperation on production management.

Does OPEC+ always successfully control oil prices?

No. While OPEC+ has significant influence, it doesn't control all global oil production. OPEC has only ever controlled part of total global oil production, with OPEC production on average accounting for 40% of the global crude oil supply between 1992 and 2022. Non-OPEC+ producers, particularly the United States, can offset production cuts by increasing their own output. Additionally, member compliance with quotas is inconsistent, which can undermine the group's effectiveness. Market forces, geopolitical events, and global economic conditions also play major roles in determining oil prices.

How do OPEC+ decisions affect consumers?

OPEC+ production decisions ripple through the entire economy. When the group cuts production to support higher prices, consumers typically see increased costs at the gas pump, higher heating bills, and elevated prices for goods that depend on transportation. When OPEC+ increases production, the additional supply can help moderate energy costs. The impact varies depending on how much spare production capacity exists elsewhere in the market and how quickly non-OPEC+ producers can respond to price signals.

Last updated: June 8, 2026. For the latest energy news and analysis, visit stakeandpaper.com.