CURRENT AFFAIRS

Detailed explanation-1: -When OPEC meets, the members consider the market for oil and make decisions about how much oil to produce to maximize profit. Prices for commodities like oil are determined by supply and demand. When supply increases or demand decreases, prices fall. Reductions in supply or increases in demand mean a rise in prices.

Detailed explanation-2: -OPEC failed to maintain a high price of oil in the long run, partly because both the supply of oil and the demand for oil are more elastic in the long run than in the short run.

Detailed explanation-3: -In 2016, when oil prices were particularly low, Opec joined forces with 10 other oil producers to create Opec+. Those new members included Russia, which also produces over 10 million barrels a day. Together, these nations produce about 40% of all the world’s crude oil.

Detailed explanation-4: -The production quotas proved hard to enforce, as many OPEC members were unhappy with their quotas and cheated or decided to completely ignore the production quotas agreed upon. By 1985, Saudi Arabia was fed up with their role as swing producer while other OPEC members continued to cheat on their production quotas.