OPEC

OPEC

Proper Noun (Acronym) · /ˈəʊ.pek/

Definition

The Organisation of the Petroleum Exporting Countries — an intergovernmental organisation founded in 1960, currently comprising 12 member states, that coordinates and unifies petroleum policies among its member countries in order to secure fair and stable prices for petroleum producers, an efficient and regular supply to consuming nations, and a fair return on capital to those investing in the industry.

Origin

Acronym from the Organisation of the Petroleum Exporting Countries. Founded in Baghdad on 14 September 1960 at the initiative of Venezuela and the Arab states, originally comprising Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Headquartered in Geneva until 1965, then in Vienna. The founding motivation being to counteract the power of the major international oil companies (the 'Seven Sisters') that controlled oil pricing. OPEC becoming internationally prominent in the 1973 oil embargo, when Arab member states imposed an oil embargo on nations supporting Israel in the Yom Kippur War, quadrupling world oil prices.