Why in News?
India would coordinate with China and other Asian countries to raise voice against the “Asian premium” being charged by the Organisation of the Petroleum Exporting Countries (OPEC)
FACTS FOR PRELIMS
Asian Premium is extra charge being collected by OPEC countries from Asian countries when selling oil in comparison to western countries. The discriminatory Asian Premium is mainly used by OPEC countries to subsidised western buyers at cost of Asian buyers.
NOTE4STUDENTS-India sources about 86 per cent of crude oil, 75 per cent of natural gas and 95 per cent of LPG from OPEC member nations.
OPEC, which describes itself as a permanent intergovernmental organization, was created in Baghdad in Sept. 1960 by its founding members: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
The headquarters of the organization are in Vienna, Austria, where the OPEC Secretariat, its executive organ, carries out OPEC’s day-to-day business.The Chief Executive Officer of OPEC is its Secretary General.
According to its statutes, OPEC membership is open to any country that is a substantial exporter of oil and that shares the ideals of the organization.
OPEC Members are Iran, Iraq, Saudi Arabia (de facto leader of OPEC), Kuwait, Qatar, United Arab Emirates (from Asia and the Middle East); Algeria, Angola, Libya, Nigeria, Equatorial Guinea and Gabon (from Africa); Ecuador and Venezuela (from South/Latin America)
It is notable that some of the world’s largest oil producers, including Russia, China and the United States, are not members of OPEC and pursue their own objectives.
OPEC Reference Basket
The ORB is the weighted average of prices for petroleum blends produced by OPEC countries.It is used as an import benchmark for crude oil prices. The reference basket currently consists of a weighted average of the twelve crude oils.