Organisation of Petroleum Exporting Countries (OPEC) is a body that was established in 1960 by five main oil-exporting countries of Iran, Iraq, Kuwait, Saudi Arabia, Venezuela to enable them to adopt a uniform policy towards oil-importing countries. Through the success of this organisation in maintaining oil prices, stability, and uniformity of policies, many other countries were attracted to join the OPEC. Nigeria joined in 1971. In total OPEC has 13 countries as members
Objectives of Organisation of Petroleum Exporting Countries (OPEC)
1. To adopt a uniform policy towards oil importing countries
2. To maintain stability of price of oil in the international market
3. To ensure steady and effective supply of petroleum products to importing countries
4. To fix allocates production quota to each member states
5. To negotiate for the participation of its members in oil exploitationTo use someone or something unfairly for your own advantage. More and exploration
Achievements of Organisation of Petroleum Exporting Countries (OPEC)
1. Organisation of Petroleum Exporting Countries (OPEC) has succeeded in raising the price of oil
2. OPEC has succeeded in ensuring the participation of its member nations in oil exploration
3. It has succeeded in regulating the activities of multinational companies
4. OPEC has established a common fund which had aided its needy member nations financially.
5. The organisation has served as a forum for member countries to solve their problems jointly.
Problems of Organisation of Petroleum Exporting Countries (OPEC)
1. There is problem of decline loyalty of its member-nations
2. The world economic depression which brought a fall in price has affected OPEC drastically
3. The rivalry for the leadership of the organisation between Saudi-Arabia and Iran is a big problem to OPEC.
4. The activities of non-OPEC member oil-producing countries such as Norway, Mexico, etc tend to neglect the rules and regulation of OPEC in the international market
5. Political disagreement between member nations has a destabilizing effect on the organisation.
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