OPEC

• In 1960, Iran, Iraq, Saudi Arabia, Kuwait, and Venezuela formed an organization called the Organization of Petroleum Exporting Countries (OPEC). *petroleum is another term for oil.

• OPEC’s purpose is to regulate the price of oil.

  • It unifies petroleum prices in order to promote stability in the world oil market and to ensure a regular supply of petroleum to other countries.

• OPEC sets the prices and amount of oil produced by its member nations.

• OPEC functions by increasing or decreasing the amount of oil each member nation produces.

• After OPEC was formed, oil production was controlled and the demand increased worldwide.

  • Oil prices rose and oil-producing countries made more money.

​Functions

OPEC Today

• Today, OPEC has expanded to 13 member countries.

  • These countries account for about 42% of the world’s oil production and 73% of its known oil reserves.

• OPEC has improved the economies of its member countries and has helped prevent religious hatred from interfering with the world’s oil supply.