OPEC is the producer cartel of major oil-exporting countries, founded in Baghdad in September 1960 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. The cartel coordinates oil production policy among its members, who together hold the majority of the world's proven crude oil reserves.
At a glance
- Founded: 1960 (Founded at the Baghdad Conference, 10–14 September 1960)
- Headquarters: Vienna, Austria
- Official languages: English
- Website: www.opec.org
Mission
OPEC's stated objective is to coordinate and unify petroleum policies among member countries to secure fair and stable prices, an efficient supply to consuming nations, and a fair return on capital for industry investors. In practice, the cartel functions by setting production quotas designed to influence global oil prices.
Structure
The Conference of OPEC, made up of national oil ministers, is the supreme authority and meets at least twice a year. The Board of Governors is the executive body. The OPEC Secretariat in Vienna handles day-to-day operations and is led by the Secretary-General, traditionally a senior figure from a member state. Since 2016, OPEC has worked alongside ten non-OPEC oil producers (including Russia) under the OPEC+ framework.
Member states
OPEC has 12 member states. Membership current as of 2024-01.
- Algeria
- Equatorial Guinea
- Gabon
- Iran
- Iraq
- Kuwait
- Libya
- Nigeria
- Republic of the Congo
- Saudi Arabia
- United Arab Emirates
- Venezuela
Key facts
- OPEC members hold roughly 80% of the world's proven crude oil reserves but produce only around 30–40% of global supply, depending on quotas.
- Saudi Arabia is the de facto leader of the cartel by virtue of its production capacity and ability to act as a swing producer.
- Indonesia has joined OPEC twice (1962, 2016) and left both times — once in 2008 as it became a net oil importer, again in 2016 over disagreements on production cuts.
- Ecuador joined and left twice; Qatar withdrew in 2019; Angola withdrew in 2024.
- OPEC+ — the expanded grouping including Russia and others — coordinates the largest production cuts in the cartel's history, particularly during the 2020 COVID-19 demand collapse.
Historic milestones
| Year | Event |
|---|---|
| 1960 | OPEC founded in Baghdad by 5 members |
| 1973 | Oil embargo against US, UK, and others triggers global energy crisis |
| 1986 | Oil price collapse marks the end of OPEC's peak influence |
| 2016 | Declaration of Cooperation with non-OPEC producers (OPEC+) |
| 2020 | Largest-ever production cut amid COVID-19 demand collapse |
