Here are some key facts about OPEC (Organization of the Petroleum Exporting Countries) -

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Here are some key facts about OPEC (Organization of the Petroleum Exporting Countries)  - 

Overview

Establishment: OPEC was founded on September 14, 1960, in Baghdad, Iraq, by five countries: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.

Headquarters: OPEC's headquarters is located in Vienna, Austria.

Objective: Its primary goal is to coordinate and unify petroleum policies among member countries to secure fair and stable oil prices, ensure a regular supply of oil to consumers, and provide a steady income to producers.

Fun Fact

OPEC's official language is English, despite its diverse membership from different continents.

Member Countries

OPEC started with 5 founding members and has since expanded to include 13 member countries as of 2023.

Major members include Saudi Arabia, the largest oil producer in OPEC, as well as countries like UAE, Nigeria, Angola, Algeria, and Iraq.

Membership can fluctuate as countries join or leave.

Role in the Global Oil Market

Oil Production: OPEC members produce approximately 40% of the world's crude oil and hold over 80% of global proven oil reserves.

Price Influence: OPEC has significant influence on global oil prices by adjusting production levels to balance supply and demand.

Collaboration: OPEC collaborates with non-member oil-producing countries (notably Russia) in the OPEC+ alliance, formed in 2016, to manage global oil production.

Key Events

1973 Oil Crisis: OPEC's decision to impose an oil embargo on countries supporting Israel in the Yom Kippur War caused a sharp rise in oil prices and highlighted its geopolitical influence.

Oil Price Volatility: OPEC plays a pivotal role during periods of market disruption, such as the 2020 oil price collapse during the COVID-19 pandemic.

Production Cuts: Regularly adjusts production quotas to stabilize or influence oil prices.

Challenges

Competition: OPEC faces competition from non-member oil-producing nations like the United States, especially with the rise of shale oil.

Energy Transition: Global shifts toward renewable energy and climate change policies pose long-term challenges to oil demand.

Internal Disputes: Member countries occasionally disagree over production quotas, which can affect the organization's unity.