OPEP

OPEP stands for Organización de Países Exportadores de Petróleo. In English, the organization is known as the Organization of the Petroleum Exporting Countries (OPEC). It is an intergovernmental organization that coordinates the petroleum policies of its member states to secure fair and stable prices for producers and a reliable energy supply for consumers. It was founded in 1960 in Baghdad by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The headquarters are in Vienna, Austria. Since its founding, several other countries have joined, and it now operates with non-OPEC producers through the OPEC+ framework.

Its core purpose is to coordinate petroleum policies to stabilize the market. The primary instrument is the setting of collective production quotas by the Conference, the organization's highest decision-making body. The Secretariat in Vienna provides data, analysis and administrative support. In addition, OPEC collaborates with non-OPEC members under the OPEC+ arrangement to adjust output in response to market conditions.

As of 2024, OPEC has 13 member countries: Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela. Indonesia, Ecuador and Qatar previously participated but left in earlier years. The organization's influence is often discussed in the context of global oil prices, production capacity, and the broader energy market.

OPEC's role has evolved amid changing demand, geopolitics and competition from non-OPEC production, especially U.S. shale. While it can influence price through output decisions, its effectiveness depends on cooperation among members and external market forces. The organization remains a central actor in global energy policy and economic planning for oil-exporting economies.