China Overtakes OPEC+ as the Main Oil Price Maker

Overview: China has emerged as the most influential force in global oil pricing, surpassing OPEC+. By strategically increasing imports during price dips and reducing purchases during price rises, China has effectively set price floors and ceilings. This shift marks a historic transition from producer-driven pricing to demand-side dominance in global energy markets.

Riyaz

Dec-24-2025

China Overtakes OPEC+ as the Main Oil Price Maker

China surpassed OPEC + as the key factor affecting international oil rates, which is a major change in the dynamics of energy markets. Historically, the OPEC+ collective of producers coordinating the reduction of production and level of output dictated the price trends. Nonetheless, China, the largest oil importer in the world, has been utilizing its massive stock reserves of crude to literally dictate price floors and ceilings by buying more when the prices are down and selling less when they are up. This is strategic inventory management that has pegged oil prices beyond OPEC+ production policy and provided Beijing with unprecedented influence over the global prices.

How China Replaced OPEC+ as the Global Oil Price Maker?

By leveraging its position as the largest crude importer in the world, China surpassed OPEC+ as the key player in global oil prices in 2025.
Beijing changed the flows of crude stockpiles: it purchased more crude when its price dropped and imported less crude when its price went up, and this effect formed a price floor and price ceiling.
As the OPEC+ maintained production despite the oversupply, China was the recipient of the excess oil and price price fluctuation anchor.

Difference Between OPEC and OPEC+

Aspect	OPEC	OPEC+
Full Form	Organization of the Petroleum Exporting Countries	OPEC + Non-OPEC oil-producing countries
Started	1960	2016
Members	13 oil-exporting countries	OPEC members plus 10+ non-OPEC producers
Key Non-OPEC Members	—	Russia, Kazakhstan, Mexico, Oman
Purpose	Coordinate the oil policies of member states	Jointly manage oil supply to influence global prices
Market Influence	Moderate	Much stronger due to wider production control

PYQs Based Questions on OPEC & OPEC+

Exam Name	Year	Question	Answer
SSC CGL	2020	What is OPEC?	A group of oil-exporting countries formed in 1960 to coordinate petroleum policies.
UPSC Prelims	2021	OPEC headquarters is located in which city?	Vienna, Austria.
RRB NTPC	2021	Which country is not a member of OPEC but is part of OPEC+?	Russia.
SSC CHSL	2022	What does the ‘+’ in OPEC+ stand for?	Non-OPEC oil-producing countries joining OPEC coordination.
UPSC Prelims	2022	When was OPEC established?	In 1960, in Baghdad, Iraq.
Banking Awareness	2023	Which organization has more control over the global oil supply — OPEC or OPEC+?	OPEC+.
State PCS	2023	Name any two members of OPEC.	Saudi Arabia and Iraq.
Railway Group D	2024	Why was OPEC+ formed?	To jointly manage oil output and stabilize global prices.

Read Also:

Conclusion

The fact that China has surpassed OPEC+ as the key oil price maker is indicative of a significant shift in global energy power. China is now as much a price tamer as a producer cutter, due to the demand side of the equation. Through strategic importation and stockpiling, it is no longer OPEC+ that guarantees the oil markets react to changes in supply and demand.