Organization of the Petroleum Exporting Countries (OPEC)

Organization of the Petroleum Exporting Countries (English: Organization of the Petroleum Exporting Countries — OPEC) is a permanent intergovernmental organization established to ensure price stability in the international oil market and to support the economic development of its member states.^【1】 The organization manages global crude oil supply through production quotas, which are determined by agreement among member states.^【2】 OPEC’s headquarters has been located in Vienna, Austria since 1965.^【3】

As of 2024, OPEC has a total of 12 members: Algeria, the Republic of the Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates and Venezuela.^【4】 These members control approximately thirty percent of global oil supply.^【5】

On 28 April 2026 the United Arab Emirates announced its intention to withdraw from membership in OPEC and OPEC+.^【6】

Founding and Historical Development

Founding (1960)

OPEC was established by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela following a conference held in Baghdad, Iraq, from 10 to 14 September 1960. The organization’s founding coincided with a period of transformation in the international economic and political environment, marked by widespread decolonization and the emergence of numerous newly independent states.

The purpose of OPEC was to coordinate the petroleum policies of member countries, ensure price stability in the international oil market and regularize oil supplies. During its first five years, OPEC’s headquarters was located in Geneva, Switzerland; it was relocated to Vienna on 1 September 1965.^【7】

1960s and 1970s

In 1968, OPEC adopted a "Petroleum Policy Declaration" emphasizing member states’ permanent sovereignty over their natural resources. By 1969, the organization’s membership had reached ten.

Following the 1973 Arab-Israeli War, production cuts led to a rise in crude oil prices from $3.29 to $11.58 per barrel.^【8】 After a summit held in Algiers in 1975, OPEC initiated new initiatives under the framework of international development; this process culminated in the establishment of the OPEC Fund for International Development in 1976. By 1975, OPEC’s membership had grown to thirteen.^【9】

1980s and 1990s

At the beginning of the 1980s, global energy demand declined and oil demand fell. This period led to a significant price slump in the oil market in 1986. During this time, OPEC’s share of the global oil market diminished and the organization’s total oil revenues declined.

Binding production quotas for member states were introduced in 1981.^【10】 In 1985, Saudi Arabia changed its production policy by increasing oil output.

During the 1990s, the Southeast Asian economic crisis and the mild winter of 1998–99 returned oil market conditions to those of the mid-1980s. During this decade, Gabon left the organization in 1995, and some countries suspended their membership.

2000s

At the beginning of the 2000s, OPEC continued its efforts to ensure stability in the global oil market. Volatility increased in the oil market from 2004 onward, and price fluctuations occurred during the global financial crisis of 2008.

Changes occurred in OPEC membership during this period:

• Angola joined the organization in 2007.
• Ecuador reactivated its membership in October 2007.
• Indonesia suspended its membership in January 2009.^【11】

2010s and the Formation of the OPEC+ Framework

During the 2010s, shifts occurred in the balance of oil supply and demand in the global market. With the development of horizontal drilling and hydraulic fracturing technologies in the United States, oil production increased; U.S. daily oil output rose from approximately 6.8 million barrels in 2007 to about 13.1 million barrels in 2017. The increased supply led to a decline in global oil prices.

Changes in OPEC membership continued during this period:

• Indonesia reactivated its membership in January 2016.
• Indonesia suspended its membership again in November 2016.
• Gabon rejoined OPEC in July 2016.
• Equatorial Guinea joined OPEC in 2017.
• Republic of the Congo joined OPEC in 2018.
• Qatar left OPEC on 1 January 2019.

In 2016, OPEC initiated a cooperation process with non-member oil-producing countries to restore balance in the oil market. Under this framework, the OPEC+ group was formed, including Russia, Azerbaijan, Kazakhstan, Bahrain, Brunei, Malaysia, Mexico, Oman, South Sudan and Sudan. In December 2016, cooperation began under the "Declaration of Cooperation" (DoC) between OPEC members and non-OPEC producers. In 2019, the "Charter of Cooperation" (CoC) was adopted as a long-term cooperation framework.^【12】

2020s

During the COVID-19 pandemic, global oil demand experienced a sharp decline. In response, OPEC and non-OPEC producers implemented a comprehensive agreement in April 2020 to reduce oil production.

In 2025, OPEC+ countries made adjustments to their production policies. As a result, the total production quota was increased by approximately 2.9 million barrels per day. In November 2025, OPEC+ countries decided on a limited production increase for December 2025; they also decided to halt additional production increases in the first quarter of 2026.

On 28 April 2026 the United Arab Emirates announced its intention to withdraw from membership in OPEC and OPEC+.

Institutional Structure

Three-Organ Structure

OPEC has a three-organ institutional structure consisting of the Secretariat, the Conference and the Board of Governors. The Secretariat is managed by the Secretary General, who is elected by the Conference and is responsible for implementing policies determined by the other organs. The Secretary General’s term of office is three years.

The Conference is the organization’s primary negotiating and decision-making body. Each member state sends a representative to this body and holds one vote on bureaucratic matters and general policy decisions.

The Board of Governors consists of members appointed for two-year terms. This body is responsible for preparing the organization’s annual budget and planning administrative arrangements.

Meeting Mechanisms

OPEC’s core functions are carried out through meetings held throughout the year. At meetings of the Joint Technical Committee (JTC), technical experts assess the overall state of the oil market and prepare recommendations for ministers based on these assessments.

Meetings of the Joint Ministerial Monitoring Committee (JMMC) are held every two months. At these meetings, recommendations prepared by the JTC are reviewed and compliance with production quotas is monitored.

Ministerial Meetings or Conferences are generally held every six months or convened exceptionally as needed. These meetings constitute the highest-level decision-making mechanism for decisions on production quotas, target prices and other policy matters.

Decision-Making and Influence Balance

The Secretary General is responsible for the administrative structure of the organization and implements policies determined by the Conference. Production quotas and other policy decisions within OPEC and OPEC+ are determined through meetings and negotiations among member states.

As of July 2025, the total sustainable production capacity of some countries within OPEC stood at approximately 19 million barrels per day. Production cut decisions adopted under OPEC+ in 2022 were implemented jointly by member and cooperating producer countries.

Membership Changes

Following its founding in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela, additional countries joined OPEC at various times. These include Qatar in 1961, Indonesia and Libya in 1962, the United Arab Emirates in 1967, Algeria in 1969, Nigeria in 1971, Ecuador in 1973 and Gabon in 1975. Later, Angola joined in 2007, Equatorial Guinea in 2017 and the Republic of the Congo in 2018.

OPEC membership has also experienced periods of suspension, reactivation and withdrawal. Ecuador suspended its membership in December 1992, reactivated it in October 2007 and left the organization effective 1 January 2020. Indonesia suspended its membership in January 2009, reactivated it in January 2016 and suspended it again on 30 November 2016. Gabon ended its membership in January 1995 and rejoined OPEC in July 2016. Qatar left the organization on 1 January 2019. Angola ended its membership effective 1 January 2024.^【13】

On 28 April 2026 the United Arab Emirates announced its intention to withdraw from membership in OPEC and OPEC+.^【14】