Opec Is Used For The Organization Of Petroleum Exporting Countries Essay

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OPEC is abbreviation used for the Organization of Petroleum Exporting Countries. It is an intergovernmental and permanent organization which came into force in Baghdad in September 1960. Initially formed by the Five Founding members – Iran, Iraq, Kuwait, Saudi Arabia and, Venezuela, it was later joined by 9 other countries which are Qatar, Libya, UAE, Algeria, Nigeria, Angola, Gabon, Indonesia and Ecuador. The organization’s headquarters were first located in Geneva, Switzerland for the first five years but were later moved to Vienna, Austria in 1965.
This organization was created to synchronize the petroleum policies of its members and to provide the member states with aid and support economically and technologically. OPEC is basically an association that focuses on managing the supply of oil in an attempt to set and control the oil prices in the market all around the world. It is also done to avoid the instabilities that might directly or indirectly affect the economies of the member countries who both procure or create oil.
Its main objective is to coordinate and unify petroleum policies among member nations to secure genuine and constant prices for petroleum producers, an efficient, economic and stable supply to consuming nations, and a fair return of capital to investors in the industry.
(OPEC, 2016)

CENTRAL ARGUMENT:

In 1970s, OPEC achieved international distinction as the members of this cartel, gained a major role in the price fixing of crude oil, majorly

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