Q. With reference to the Organization of the Petroleum Exporting Countries Plus (OPEC+), consider the following statements:
1.OPEC+ is led by the United States.
2.OPEC+ includes non-OPEC oil-producing countries.
3.When OPEC+ decides to cut oil production, oil prices tend to decrease.
How many of the statements given above are correct?
Answer: A
Notes:
Explanations –
Statements 1 and 3 are incorrect. OPEC+ is not led by the United States. It is a coalition of OPEC members and other oil-producing countries, including Russia, but the U.S. is not part of OPEC or OPEC+. Generally, when OPEC+ cuts oil production, it leads to a decrease in supply, which tends to increase oil prices rather than decrease them.
Statement 2 is correct. OPEC+ includes both OPEC members and non-OPEC oil-producing countries such as Russia, Mexico, and Kazakhstan.
Source: The Hindu
