Opec Summary Come Notes
Opec Summary Come Notes
Opec Summary Come Notes
The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 1014, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five Founding Members were later joined by nine other Members: Qatar (1961); Indonesia (1962) suspended its membership from January 2009; Libya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973) suspended its membership from December 1992-October 2007; Angola (2007) and Gabon (19751994). OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence. This was moved to Vienna, Austria, on September 1, 1965. OPEC was formed at a meeting held on September 14, 1960 in Baghdad, Iraq by five founder members Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. It was registered with the United Nations Secretariat on November 6, 1962. It seeks to ensure the stabilization and harmony of the oil prices international oil market by eliminating fluctuations for the wellbeing of producers, consumers and investors. Currently it controls supply of oil in the world.
Advantages of OPEC:
More efficient to provide a regular supply to the consuming nations. Ensures a steady income and risk minimization by accessing in a bigger market. Better access to recourses of the producing countries. Bigger influence on international petroleum market by changing the petroleum policies according to the world demand and supply.
Disadvantages of OPEC:
Can have too much control of oil and its price as they are the main oil producing countries around the world. Sometimes it hurts non-members by limiting oil supply. Sometimes its difficult for the member countries to agree its policies of limiting the supply of producers to make the price stability. As a result, there can have some conflicts
Benefits of OPEC
OPEC stands for the Organization of Petroleum Exporting Countries and it is an international alliance that is responsible for coordinating the policies related to petroleum in its member states. The first five member nations of OPEC are Kuwait, Iraq, Venezuela, Iran and Saudi Arabia. OPEC offers the following important benefits.
means that any actions that are going to be taken by this particular organization are going to be felt in the entire world.