OPEC’s objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.

What has OPEC done?

It has also helped maintain stable and regular supplies of oil to the market; expand its role on the global stage; helped enhance and build better cooperation and dialogue among producers and consumers, and created a facility — the OPEC Fund for International Development — for channeling aid to developing nations.

Why is OPEC important in the world’s economy?

The organisation controls 78 percent of the world’s oil exports. As these OPEC nations produce such a significant portion of the world’s oil supply, they can manipulate the price per barrel. They do this by controlling the barrels per day that they sell on the market.

What does it mean to be a member of OPEC?

For many commentators, OPEC is a cartel in the sense that it regulates the supply of oil in the hope of controlling the price. OPEC does this by holding biannual meetings to set the oil production quotas for its member countries. In the past, OPEC’s dominance over the production of oil meant that the organisation was considered to be very powerful.

Why is OPEC important to the world economy?

OPEC is a permanent organisation of 12 countries which are world-leaders in oil production. The primary aim of OPEC is to unify petroleum policies between its member countries, to ensure fair and stable oil prices. OPEC also tries to ensure a steady supply of petroleum to oil consuming nations.

What is the organization of the Petroleum Exporting Countries ( OPEC )?

What Is the Organization Of The Petroleum Exporting Countries (OPEC) OPEC is a cartel that aims to manage the supply of oil in an effort to set the price of oil on the world market, in order to avoid fluctuations that might affect the economies of both producing and purchasing countries.

Where was the original headquarters of OPEC located?

The organization was initially created by five nations, namely Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. The original headquarters of OPEC was in Geneva, Switzerland until it relocated to Vienna five years later. One of the first meetings of OPEC. Image Credits: OPEC – Organization of the Petroleum Exporting Countries