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Ecuador to quit OPEC in 2020

In news

Ecuador one of the smallest members of the Organization of the Petroleum Exporting Countries has decided to withdraw from 14-nation Organization of the Petroleum Exporting Countries (OPEC) from 1 January 2020.

 

Ecuador rejoined the organization in 2007, after withdrawing in 1992

Reason behind the decision
  • Ecuador has taken this decision in the backdrop of internal fiscal problems.
  • This measure is in line with the national government's plan to reduce public spending and generate new income
ecuador के लिए इमेज नतीजे
Details
  • The country is attempting to increase its production of crude oil in a bid to raise more income. 
  • Further, Ecuador had also asked Opec for permission to produce oil above its quota but the OPEC has not responded to the request. 
ecuador to leave OPEC के लिए इमेज नतीजे
OPEC
  • The Organization of the Petroleum Exporting Countries (OPEC) is a group consisting of 14 of the world’s major oil-exporting nations. 
  • OPEC was founded in 1960 to coordinate the petroleum policies of its members and to provide member states with technical and economic aid.
  • OPEC is a cartel that aims to manage the supply of oil in an effort to set the price of oil on the world market, in order to avoid fluctuations that might affect the economies of both producing and purchasing countries.
  • Countries that belong to OPEC include Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela (the five founders), plus the United Arab Republic, Libya, Algeria, Nigeria, and five other countries.
Key Takeaways
  • The Organization of the Petroleum Exporting Countries (OPEC) is a cartel consisting of 14 of the world’s major oil-exporting nations.
  • OPEC aims to regulate the supply of oil in order to set the price on the world market.
  • The arrival of fracking technology for natural gas in the U.S. has reduced OPEC’s ability to control the world marke
 


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