The Influence of OPEC

Impact of Petroleum Exporting Countries Organization OPEC was founded in Baghdad, Iraq in 1960 to coordinate and harmonize the policies of oil exporters. According to OPEC, its main goal is to "stabilize crude oil price" and secure stable income in oil-producing countries. In order to achieve this goal, OPEC member states meet at least once every two years and decide whether to increase or decrease collective oil production to maintain what they think is "stable" price. The main factors to consider when developing oil policy are economic growth forecast and pet demand.

The Organization of Petroleum Exporting Countries has a different role during its existence, sometimes it has been very successful in affecting oil prices, but others have not been so successful, but it affects oil prices . OPEC traditionally produces about 40% of the world's oil and is a very strong organization with nearly 80% of the proven oil reserves. Its members include 11 of the world's top 20 oil producers. In addition, since oil producers other than OPEC tend to produce near maximum production volume, they account for the majority of the overproduction capacity of the world. This makes it easy to understand the weight and strength of OPEC members in the oil market.

OPEC's market impact has been widely criticized as it has become effective in determining production and pricing. The Arab countries of the Organization of Petroleum Exporting Countries used "oil weapons" to carry out oil embargo and shocked the developed countries when they started the oil crisis of 1973 during the Yom Kipple War. From the point of view of the Organization of Petroleum Exporting Countries, the main political interpretation of the timing and extent of OPEC price hikes is also effective, but these changes are mainly due to previous unilateral changes in the global financial system and the consequences As a result of development. High inflation period in countries and the European economy. Developing countries This explanation includes actions by the Organization of Petroleum Exporting Countries before and after the hostile action in October 1973, and "The Organization of Petroleum Exporting Countries only maintains equilibrium due to the high dollar value of crude oil There was no conclusion.