The Organization of the Petroleum Exporting Countries (OPEC)
is a permanent intergovernmental organization of 12 oil-exporting
developing nations that coordinates and unifies the petroleum policies
of its Member Countries. OPEC seeks to ensure the stabilization of oil
prices in international oil markets with a view to eliminating harmful
and unnecessary fluctuations, due regard being given at all times to
the interests of oil-producing nations and to the necessity of securing
a steady income for them; an efficient, economic and regular supply of
petroleum to consuming nations; and a fair return on capital to those
investing in the petroleum industry.

OPEC was founded at a meeting held on September 10-14, 1960 in
Baghdad, Iraq, by five oil producing countries: Iran, Iraq, Kuwait,
Saudi Arabia and Venezuela. These countries are referred to as the
Founder Members of the organization. OPEC was registered with the
United Nations Secretariat on November 6, 1962.

The OPEC Statute stipulates that: “any country with a substantial net
export of crude petroleum, which has fundamentally similar interests
to those of Member Countries, may become a Full Member of the
Organization, if accepted by a majority of three-fourths of Full Members,
including the concurring votes of all Founder Members”. The Statute
further distinguishes between three categories of membership: Founder
Member, Full Member and Associate Member. Founder Members of the
Organization are those countries which were represented at OPEC’s
first Conference, held in Baghdad, Iraq, in September 1960, and which
signed the original agreement establishing OPEC.

Representatives of OPEC Member Countries (Heads of Delegation) meet
at the OPEC Conference to coordinate and unify their petroleum policies, in
order to promote stability and harmony in the oil market. They are supported
in this endeavour by the OPEC Secretariat, directed by the Board of Governors
and run by the Secretary General, and by various bodies, including the
Economic Commission Board and the Ministerial Monitoring Sub-Committee.
Member Countries consider the current oil market situation and forecasts of
market fundamentals, such as economic growth rates and petroleum demand
and supply scenarios. They then consider what changes, if any, they might make
to production. For example, at previous Conferences Member Countries have
on several occasions decided to raise or lower their collective oil production
so as to maintain stable prices and steady supplies to consumers in the short,
medium and long term.

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