THE GLOBAL POLICY AND OIL PRICE: MODERN ENERGY POLICY IN OPEC PRIORITIES

Abstract

The article is devoted to the current problem of modern energy policy in the priorities of OPEC countries. In particular, the influence of pandemic and geopolitical situations in the world on the oil market is investigated. One of the most important areas for the international community is energy, which is one of the main guarantors of universal security in the modern world. The agreement to reduce oil production by OPEC and non-OPEC countries has become the most significant example of international multilateral cooperation in the energy sector in recent years. During 2017-2020, the OPEC+ agreement managed to stabilise the oil market significantly. In 2017, the average price of Brent on the market reached a new agreement from 1 May 2020 to 1 May 2022. The list of participants has been significantly expanded. In addition to the 24 OPEC+ countries, a number of G-20 countries supported the deal, including the USA, which, although not formally part of the cooperation due to legal specifics, expressed their willingness to help stabilise the situation on a voluntary basis. This was an unprecedented signal to the market. To date, the purpose of OPEC is to coordinate activities and develop a common policy regarding oil production among the member countries of the organization, maintain stable oil prices, ensure stable supply of oil to consumers, get return on investment in the oil industry. In addition, an important mission of OPEC is to coordinate and standardize the oil policies of member countries, determine the most effective collective means of protecting the interests of producing countries, and cooperate with non-OPEC countries, which include Russia, Norway, and Mexico, in order to implement initiatives to stabilize the global oil market. This article examines the effectiveness of OPEC in shaping oil prices and its ability to manage the conditions created by pandemic situations and the impact of the oil market on the current geopolitical processes taking place on the world stage.