A beginner’s guide to OPEC’s structure, founding goals, and how its decisions affect global crude oil supply and prices.
What is OPEC? Introducing its role and impact on crude oil prices
OPEC, the Organisation of the Petroleum Exporting Countries, is an international organisation whose members are oil-producing nations.
Its stated objective is to coordinate and unify petroleum policies among member countries.
In 2016, a broader framework called OPEC Plus (OPEC+) was established, significantly influencing global crude oil prices.
This article explains OPEC's purpose, structure, and functions and answers some frequently asked questions about the organisation.
What is OPEC?
This section outlines the purpose and structure of OPEC.
Background and objectives
After the Second World War, the oil resources of Arab nations were controlled mainly by international oil conglomerates, often referred to as “oil majors,” which reduced crude oil prices without considering the interests of producing countries.
In response, oil-producing nations united to protect their interests, creating OPEC in 1960.
The organisation has three main objectives: to coordinate oil policies among member countries; to ensure an efficient and stable oil supply; and to provide steady revenue for oil producers.
Structure and decision-making
OPEC comprises three key bodies:
The Conference
The Conference is OPEC’s highest decision-making entity. It comprises delegations from each member country and meets twice a year.
Each country has one vote, and decisions (excluding procedural matters) require unanimous agreement.
The Conference determines a wide range of policies and strategies.
The Board of Governors
The Board of Governors supervises the Secretariat’s activities, including reviewing research reports and budget proposals.
Its members are appointed and approved by the Conference.
The Secretariat
The Secretariat handles OPEC's day-to-day operations and comprises the Secretary General and staff.
It includes departments for research and policy analysis.
What is OPEC+?
Following a decline in crude oil prices, starting in 2014, OPEC and non-member oil-producing countries agreed to coordinate production cuts in December 2016, forming the OPEC+ alliance.
When OPEC+ was formed, 10 non-OPEC countries, such as Russia and Mexico, were included.
List of OPEC member countries (as of May 2025)
| Original members (5) | Iraq, Iran, Kuwait, Saudi Arabia, Venezuela |
|---|---|
| Other members (7) | United Arab Emirates, Algeria, Gabon, Republic of the Congo, Equatorial Guinea, Nigeria, Libya |
| OPEC+ participants (12 OPEC members + 11 others) | Azerbaijan, Oman, Kazakhstan, Sudan, Bahrain, Brazil, Brunei, Malaysia, South Sudan, Mexico, Russia |
Note: Other countries, such as Qatar and Indonesia, have withdrawn or suspended their membership over the years.
For the latest information, please refer to the official OPEC website.
OPEC’s impact on the oil market
OPEC member countries collectively produce a substantial share of the world’s oil, and their pricing decisions influence global oil prices.
Crude oil production share by country (2023):
| Country | Share | OPEC Member |
|---|---|---|
| United States | 22% | |
| Saudi Arabia | 11% | Yes |
| Russia | 11% | OPEC+ |
| Canada | 6% | |
| China | 5% | |
| Iraq | 4% | Yes |
| Brazil | 4% | OPEC+ |
| United Arab Emirates | 4% | Yes |
| Iran | 4% | Yes |
| Kuwait | 3% | Yes |
OPEC members account for over 36% of global production, while OPEC+ collectively represents around 40–45% (based on 2023 EIA estimates).
Frequently asked questions about OPEC
Where can I view real-time crude oil charts?
OANDA provides real-time charts for WTI crude oil (USOIL).
Users can select time frames such as 1-hour, daily, 7 days and 30 days.
The candlestick chart displays prices (open, high, low, closing) over the selected period.
What is the difference between OPEC and OAPEC?
OPEC is a global organisation comprising oil-producing countries regardless of region.
OAPEC (the Organisation of Arab Petroleum Exporting Countries) consists solely of Arab oil-producing nations.
As of May 2025, six countries belong to both organisations. Some belong only to OPEC and others only to OAPEC.
| Member of Both | OPEC Only | OAPEC Only |
|---|---|---|
| UAE | Iran | Egypt |
| Algeria | Gabon | Qatar |
| Iraq | Republic of the Congo | Syria |
| Kuwait | Equatorial Guinea | Tunisia |
| Saudi Arabia | Nigeria | Bahrain |
| Libya | Venezuela |
Note: Some countries may have withdrawn or temporarily suspended their membership.
Please refer to the official OPEC website for up-to-date information.
Summary: Understanding OPEC and its influence on oil prices
OPEC is an international alliance of oil-producing countries that aims to ensure stable oil supplies and steady revenue for producers.
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