OPEC

The oil producer group whose output targets shape global supply and prices.

Overview

The Organization of the Petroleum Exporting Countries was founded in Baghdad in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela, and is headquartered in Vienna. Members set production targets to influence prices, and the 1973 embargo by Arab producers showed the power of coordinated supply. Since 2016 the wider OPEC+ grouping, which adds Russia, Kazakhstan, Mexico and others, has coordinated output cuts and increases, with Saudi Arabia holding most of the spare capacity. Compliance varies, quotas rest on contested baselines, and some members have left over policy disputes, including Qatar in 2019 and Angola in 2024. Meetings move Brent and WTI, and spare capacity is the main shock absorber of the oil market.