Entities

The Organization of Petroleum Exporting Countries

The Organization of Petroleum Exporting Countries
OPEC
1/1/1960

The Organization of Petroleum Exporting Countries (OPEC) is a group consisting of 12 of the world's major oil-exporting nations

More About The Organization of Petroleum Exporting Countries

  • Considered by many to be an oil cartel
    • Goal to manage the supply of oil in an effort to set the price of oil on the world market
    • Goal to avoid oil price fluctuations that might affect the economies of both producing and purchasing countries
  • Founded in 1960
  • Coordinate the oil policies of its members
  • Provides member states with technical and economic aid
  • Includes major oil exporters:  Kuwait, UAE, Saudi Arabia, Iraq, Iran + 10 more
    • Dominated by Saudi Arabia
  • Not viewed positively by Americans after the 1970s oil Embargos
  • Has lost power as other countries (Russia, United States) have increased oil production
  • One of the most powerful institutions in the world
  • Holds spare oil filed capacity at the ready
    • If prices/demand rise, they can bring on capacity to stop the price rise (if they want do)