The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization made up of 15 countries that are major producers and exporters of oil. It was founded in 1960 with the goal of coordinating and unifying the petroleum policies of its member countries, in order to secure fair and stable prices for petroleum producers and ensure a steady supply of oil to the global market.
The current member countries of OPEC are Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates, Venezuela, and two non-OPEC members – Russia and Oman. Together, these countries account for over 80% of the world's proven oil reserves.
OPEC operates through regular meetings among its member countries to discuss and decide on production levels and pricing strategies. The decisions made by OPEC have a significant impact on global oil prices as its members collectively produce about one-third of the world's crude oil.
One of the key objectives of OPEC is to maintain stability in the global oil market by balancing supply and demand. This is achieved through setting production quotas for each member country based on their individual production capacities. By controlling production levels, OPEC aims to prevent extreme fluctuations in oil prices.