OPEC, theOrganization of the Petroleum Exporting Countries is aninternational organization. Since 1965, the headquarters of OPEC has been inVienna,Austria. OPEC was established inBaghdad,Iraq on 10–14 September 1960.[4]
Its work is to "coordinate and unify the petroleum policies" of its members, and also to "ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers, and a fair return on capital for those investing in thepetroleum industry".[5][6][7][8]
According to theUnited States Department of Energy Energy Information Administration (EIA), OPEC crude oil production is an important factor affecting global oil prices. OPEC sets production targets for its member nations and generally, when OPEC production targets are reduced, oil prices increase.[9] Projections of changes in Saudi production result in changes in the price ofcrude oil.[9]
OPEC was formed in 1960 when the international oil market was largely dominated by multinational companies known as the 'seven sisters'.[10]: 503 The formation of OPEC was a turning point in state control over natural resources.[10]: 505 In the 1960s OPEC made sure that oil companies could not unilaterally cut prices.[10]: 505 In December 2014, OPEC and the oil men were named in the top 10 most influential people in the shipping industry by Lloyds.[11]
