OPEC+, an informal coalition of 23 oil-producing nations, was established to tackle issues in the global oil market, such as oversupply and price fluctuations. This influential group consists of the 12 members of the Organization of the Petroleum Exporting Countries (OPEC) along with 10 additional oil-producing nations. OPEC+ holds regular meetings to discuss and agree on production adjustments aimed at stabilizing oil prices and maintaining a balanced market.

The OPEC+ alliance was created in 2016 in response to a significant drop in oil prices caused by oversupply in the global market. Traditional efforts by OPEC alone were not enough to resolve the issue, prompting OPEC member countries to seek collaboration with non-OPEC nations to implement coordinated production cuts. By fostering cooperation between OPEC and non-OPEC countries, the group aims to establish a more predictable and balanced oil market, benefiting both producers and consumers.

The 12 OPEC members include Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela. The 10 additional oil-producing countries that make up the “+” in OPEC+ are Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan, and Sudan.

Since its formation, OPEC+ has played a crucial role in stabilizing the global oil market. The primary objective of OPEC+ is to stabilize global oil prices by balancing supply and demand. To achieve this, the group coordinates production cuts among its member countries, preventing oversupply or shortages in the market. These coordinated production cuts have contributed to reducing the oversupply of oil, leading to a gradual recovery in prices.

In 2016, when oil prices were at a low, OPEC+ agreed to cut production, which helped boost prices and stabilize the market. In 2020, amid the COVID-19 pandemic that sharply reduced oil demand, OPEC+ further agreed to cut production, preventing a collapse in prices and keeping the market afloat. The regular meetings and communication among OPEC+ members have also enhanced transparency and predictability in the oil market.

However, the effectiveness of OPEC+ can be affected by various factors, including geopolitical tensions, economic fluctuations, and changing demand patterns. The alliance has encountered challenges in maintaining production discipline among its members, and external factors, such as the COVID-19 pandemic, have added complexity to the group's efforts to balance the oil market.