The Organization of the Petroleum Exporting Countries is an international cartel made up of countries from South America, Africa and Asia that produce and export oil. The Vienna-based organization has maintained its headquarters there since 1965, hosting regular meetings between the oil ministers of its member states.

OPEC

The main purpose of the organization, according to its statement, is the determination of the best means for safeguarding their interests, individually and collectively; devising ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations; giving due regard at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient, economic and regular supply of petroleum to consuming nations, and a fair return on their capital to those investing in the petroleum industry. Wikipedia

OPEC is a permanent, intergovernmental organization, created at the Baghdad Conference on September 10-14, 1960 by 5 founding members Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They were later joined by nine other Members: Qatar (1961), Indonesia (1962), Socialist Peoples Libyan Arab Jamahiriya (1962), United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973-1992), Gabon (1975-1994) and Angola (2007).

OPEC today has twelve member states. Indonesia status is under review as this country is no longer considered an oil exporter. Gabon and Ecuador were former members. Other countries under possibilities to be part of the organization are Bolivia, Mexico, Sudan and Syria. Ecuador is seeking to re-join the organization.

Chavez & OPEC

Venezuela's president, Hugo Chavez, has been giving a strong importance to this organization during his presidency, thanks to the petrodollar warfare and his thoughts against United States. He's recently stated "Oil prices will reach the $100 barrier".

OPEC

Wikipedia

Concise Encyclopedia of Economics

Wikipedia

History of OPEC - First Meeting

The organization had its headquarters in Geneva, Switzerland, in the first five years of its existence. This was moved to Vienna, Austria, on September 1, 1965. The Ministers of energy and hydrocarbon affairs meet twice a year to review the status of the international oil market and the forecasts for the future in order to agree upon appropriate actions which will promote stability in the oil market.

OPEC Cartel

The mission statement of the organization is "to coordinate & unify the petroleum policies of member countries & ensure the stabilization of oil markets in order to secure an efficient, economic & regular supply of petroleum to consumers, a steady income to producers & a fair return on capital to those investing in the petroleum industry". OPEC

In its history, the organization's decisions have considerable influence on international oil prices. In the 1973 energy crisis OPEC refused to ship oil to western countries that had supported Israel in the Yom Kippur War or October War, which they fought against Egypt and Syria. This refusal caused a fourfold increase in the price of oil.

OPEC & Iraq:

When Hugo Chavez came to power in Venezuela, he started a series of meetings with Iraq's Government (when Saddam Hussein was still the president). In 2000, Chavez hosted the first summit of heads of state of OPEC in 25 years. The next year, however, September 11 attacks against US and the subsequent invasions of Afghanistan and Iraq, prompted a surge in oil prices to levels far higher than those targeted by OPEC during the preceding period.

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