His comments brought OPEC`s two main producers, Iraq and Saudi Arabia, closer together. However, Saudi Arabia has yet to publicly react to Iraq`s progress and the near-consensus came late in the day, with analysts previously convinced that the group would only agree to an extension of the current deal. International agreements on raw materials for products such as coffee, sugar, tin and, more recently, oil (OPEC: Organization of the Petroleum Exporting Countries) are examples of international cartels that have publicly concluded agreements between different national governments. When OPEC members grew tired of years-long supply competition, with yields falling and financial reserves dwindling, the organization finally attempted its first production cut since 2008. Despite many political hurdlees, the September 2016 decision to cut about 1 million barrels per day was codified by a new quota agreement at the OPEC conference in November 2016. The deal (with the exception of members from Libya and Nigeria plagued by disruptions) included the first half of 2017, in addition to the cuts promised by Russia and ten other non-members, offset by expected increases in the US slate sector, Libya, Nigeria, spare capacity and increased OPEC production at the end of 2016, before the reductions come into force. Indonesia announced a new « temporary suspension » of its OPEC membership instead of accepting the 5 percent production cut requested by the organization. Prices fluctuated by $50/bbl, and in May 2017, OPEC decided to extend the new quotas until March 2018, with the world waiting to see if and how oil stocks could be fully depleted by then. [98] [99] [100] [101] [102] [103] [3] Daniel Yergin, a longtime oil analyst, « described the relationship between OPEC and slate as `mutual coexistence`, with both sides learning to live with prices below what they want. » [104] These production reduction agreements with non-OPEC countries are generally referred to as OPEC+. [105] [106] In the 1990s, OPEC lost its two youngest members who had joined in the mid-1970s.

Ecuador withdrew in December 1992 because it was unwilling to pay the $2 million annual fee and needed to produce more oil than the OPEC quota,[65] although it was reinstated in October 2007. Similar concerns led Gabon to suspend its accession in January 1995; [66] she returned to the country in July 2016. [2] Iraq has remained a member of OPEC since the organization`s inception, but Iraqi production was not part of OPEC`s quota agreements from 1998 to 2016 due to the country`s discouraging political difficulties. [67] [68] Saudi Energy Minister Prince Abdulaziz bin Salman said OPEC could not say it had a deal until it met with non-OPEC producers on Friday.