Not Logged In Points Leaders 10:01 AM

What is OPEC?

OPEC is an acronym for Organization of the Petroleum Exporting Countries. OPEC was formed in 1960 in Baghdad, Iraq with five founding member countries. Currently OPEC is a cartel composed of 11 oil producing countries. Current member countries include: Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela. OPEC's stated purpose is said to serve three main functions:
  1. Help stabilize world oil prices
  2. Ensure oil producers achieve a reasonable rate of return on production
  3. Ensure a stable supply of crude oil for consumer use. OPEC has a current goal of $27 US per barrel of oil.

How much crude oil do the OPEC countries produce?

Collectively these countries hold approximately 77% of known world crude oil reserves. In terms of daily crude oil production OPEC countries currently produce about 41% (24.2 million barrels per day) of the world's crude oil. The oil exported by the OPEC countries accounts for 55% of all oil traded internationally. OPEC countries also represent about 15% of total world natural gas production.

How does OPEC set oil prices?

OPEC does not "set" oil prices. OPEC manipulates the free market price of crude oil by setting caps on the oil production of its member countries. Twice each year, ministers from each OPEC country meet in Vienna, Austria to review the status of the international oil market and to forecast the future oil demands in order to agree upon an appropriate crude oil production level.

Top rated articles


Related articles


walmarts in houston tx lawrence ks gas prices walmart wichita falls i44 quick trip st charles mo sam's club corpus christi kroger gas prices dayton ohio kwik trip gas prices cheapest gas buffalo ny 101 gun club lumberton texas heb texas ave college station brookshires wills point tx sams warehouse san antonio tx sams in wichita falls tx walmart in fort worth tx hulen nearest texaco chevron gas station costco colorado springs hours of operation sams club in anderson sc costco fort worth overton ridge walmart de eagle pass texas tom thumb preston rd pilot truck stop odessa tx sams club amarillo texas sams club new braunfels cheapest gas in fresno ca