Organization of the Petroleum Exporting Countries (OPEC)

The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization founded in 1960, comprising countries that are major oil producers. Its primary objective is to coordinate and unify Petroleum policies among member countries to ensure the stabilization of oil markets, secure a steady supply of oil to consumers, and ensure a fair return on Capital for those Investing in the oil industry.

OPEC’s member countries include Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela.

For example, OPEC plays a significant role in determining oil prices by setting production quotas for its members. In times of economic downturn or when oil prices fall significantly, OPEC may decide to cut production to stabilize prices. An instance of this is the OPEC+ agreement in 2020, where OPEC and other oil-producing countries, including Russia, collectively agreed to reduce oil output in response to a dramatic decline in demand due to the COVID-19 pandemic.