OPEC

OPEC, the Organization of the Petroleum Exporting Countries, is an international intergovernmental organization of oil-producing nations. It was founded in 1960 during the Baghdad Conference by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela to coordinate and unify petroleum policies and to secure fair and stable prices for producers. The organization has grown to include thirteen member countries and is headquartered in Vienna, Austria. The main organs are the Conference of Ministers, which sets policy; the Board of Governors; and the Secretariat, headed by the Secretary General, which handles day-to-day operations.

As of 2024, OPEC's members are Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates, and Venezuela. Membership has changed since its founding; for example, Qatar left in 2018 and Indonesia suspended membership in 2016. OPEC coordinates production through collective quotas and policy decisions intended to influence crude oil prices and market stability.

In addition to OPEC, a broader alliance known as OPEC+ coordinates production with selected non-OPEC producers, most prominently Russia. The group has used coordinated cuts and increases to manage supply in response to market conditions and demand cycles, including periods of price volatility and the COVID-19 era.

OPEC’s influence is frequently debated. Critics argue that the organization wields substantial market power and can suffer from opacity and compliance challenges, while supporters contend that its actions help stabilize markets, provide predictability for producers, and align policy with global energy demand. The organization’s impact has fluctuated with geopolitics, technology, and shifts in global oil demand.