What Is 'OPEC'?

The Organization of the Petroleum Exporting Countries is a group consisting of the world's major oil-exporting nations. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Term of the Day | Words to Know Organization of the Petroleum Exporting Countries (OPEC) The Organization of the Petroleum Exporting Countries (OPEC) is a group consisting of 14 of the world's major oil-exporting nations. OPEC was founded in 1960 to coordinate the petroleum policies of its members and to provide member states with technical and economic aid. OPEC is a cartel that aims to manage the supply of oil in an effort to set the price of oil on the world market, in order to avoid fluctuations that might affect the economies of both producing and purchasing countries. Countries that belong to OPEC include Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela (the five founders), plus the United Arab Emirates, Libya, Algeria, Nigeria, and five other countries. Read More » Related to "Organization of the Petroleum Exporting Countries (OPEC)" OPEC vs the US: Who Controls Oil Prices? The pricing power for oil has swung between the U.S. and OPEC over the years. OPEC's current control over oil prices seems to be in danger of slipping. Read More » Benchmark Oils: Brent Crude, WTI, and Dubai Most crude oil prices worldwide are pegged to the influential Brent, WTI, or Dubai/Oman benchmarks. Read More » What Causes Oil Prices to Fluctuate? Discover how OPEC, demand and supply, natural disasters, production costs and political instability are some of the major causes in oil price fluctuation. Read More » SPONSORED BY INVESCO The Complete Guide to ETFs ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. Learn More » Related Definitions Cartel A cartel is an organization created from a formal agreement between a group of producers of a good or service to regulate supply in order to manipulate prices. Read More » Pricing Power Pricing power refers to how much a change in price by a company can influence the demand for its product. Read More » Oil Reserves Oil reserves are an estimate of the amount of crude oil located in a particular economic region. Read More » Fracking Fracking is a slang term for hydraulic fracturing. Fracturing shallow, hard rock wells to extract oil dates back to the 1860s. Read More » CONNECT WITH INVESTOPEDIA Email sent to: geezers.mail@gmail.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC, All Rights Reserved | Privacy Policy