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Organization of the Petroleum Exporting Countries (PEC): organizational characteristics and goals of functioning. Which countries are part of the guardianship? Opec function

OPEC is international intergovernmental, created by the oil-producing powers in order to stabilize prices for. Members of this companies are countries, whose economy is largely dependent on export earnings black gold. OPEC as a permanent firm was established at a conference in Baghdad on September 10-14, 1960. Initially, the company included Iran, Iraq, Kuwait, and the Republic of Venezuela (the initiator of the creation). To these five countries who founded the company, nine more later joined: Qatar (1961), Indonesia (1962-2008, November 1, 2008 withdrew from the OPEC), Libya (1962), United Arab Emirates (1967), Algeria (1969), Nigeria (1971), (1973-1992, 2007), Gabon (1975-1994), Angola (2007).

Currently, OPEC has 12 members, taking into account the changes in the composition that occurred in 2007: the emergence of a new member of the company - Angola and repatriation to the bosom of the Ecuadorian company. In 2008, Russia announced its readiness to become a permanent observer in the cartel.

OPEC headquarters.

The headquarters was originally located in Geneva (), then on September 1, 1965 moved to Vienna (Austria). The purpose of OPEC is to coordinate activities and develop a common policy regarding oil production among the countries of the company's participants, to maintain stable prices on the oil, ensuring stable supplies of black gold to consumers, getting a return on investment in oil. The ministers of energy and black gold of the OPEC member states meet twice a year to assess the international black gold market and forecast its development for the future. At these meetings, decisions are made on the actions to be taken to stabilize market. Volume Change Decisions oil production according to the change in demand for market accepted at OPEC conferences. OPEC member countries control about 2/3 of the world's oil reserves. They account for 40% of world production or half of the world exporting black gold. The peak of black gold has not yet been passed only by the OPEC countries and Canada (from large exporters). AT Russian Federation the peak of black gold was passed in 1988.

Detail OPEC

Intergovernmental firms of commodity-producing and exporting countries were created intensively in the 1960s at the initiative of developing commodity-supplying countries in order to strengthen national control over natural resources and stabilize prices in commodity markets. Commodity associations are designed to act as a counterbalance to the existing system of consumer company in commodity markets, in order to eliminate the situation in which Western countries receive unilateral advantages due to the cartelization of buyers' markets. Some associations were subsequently joined by individual developed countries exporting the relevant types of raw materials. At present, there are interstate associations of exporters of black gold, cuprum, bauxite, iron ore, mercury, tungsten, tin, silver, phosphates, natural rubber, tropical wood, leather, coconut products, jute, cotton, black pepper, cocoa beans, tea, sugar, bananas, peanuts, citrus fruits, meats and oilseeds. Trade associations account for approximately 20% of the global exporting and about 55% supplies only industrial raw materials and food. The share of commodity associations in production and foreign trade for individual raw materials is 80-90. The economic prerequisites for the creation of trade associations were: the appearance on the world market of a significant number of independent suppliers and strengthening their suppliers and the concentration of export potential for many types of raw materials in a small number of states; high share of developing countries in world exports of relevant goods and comparable levels of production costs and quality of supplied raw materials; low short-term price elasticity of demand for many commodities, coupled with low price elasticity of supply outside of associations, in which price increases do not lead to an immediate increase in the production of this or alternative raw materials in countries outside the association.

The objectives of the activities of trade associations are: coordination politicians member countries in the field of commodities; development of ways and methods to protect their trade interests; promoting the expansion of consumption of a certain type of raw material in importing countries; implementation of collective efforts in the creation of a national processing industry, joint ventures and firms for processing, transportation and marketing exported raw materials; establishing control over the operations of TNCs; expanding the participation of national firms of developing countries in the processing and marketing raw materials: establishing direct links between producers and consumers raw materials; preventing sharp price drops raw material; simplification and standardization of commercial transactions and the necessary documentation for this; carrying out activities that contribute to the expansion of demand for commodities. There are large differences in the performance of trade associations. This is due to: the unequal importance of individual raw materials for the world economy and the economy of individual countries; specific features of a natural, technical and economic nature inherent in specific commodities; the degree of control of the association over resources, production and foreign trade of the relevant type of raw material; the overall economic potential of raw material supplier organizations.

suppliers a number of interstate associations of enterprises is difficult due to the wide geographical dispersal of the production of individual raw materials ( iron ore, cuprum, silver, bauxites, phosphates, meat, sugar, citrus). It is also important that the regulation of the markets for coffee, sugar, natural rubber, tin It is carried out mainly within the framework of international commodity agreements with the participation of importing countries of the agreed goods. A small number of associations have a real impact on the regulation of the commodity market. The greatest success was achieved almost exclusively by OPEC members (black gold exporting countries), which was facilitated by such favorable factors as the peculiarity of black gold as a basic raw material product; the concentration of its production in a small number develop a high degree of dependence of developed countries on black gold imports; the interest of TNCs in rising prices for . As a result of the efforts of the OPEC countries, the level of oil prices was significantly increased, a new system of lease payments was introduced, and the terms of agreements on the exploitation of their natural resources Western companies. OPEC in modern conditions has a significant impact on the regulation of the world black gold market by setting prices for it. The Arab member countries of the OAPEC (Arab countries exporting black gold) have achieved some success in creating on a collective basis a network of companies in the field of exploration, production, processing, transportation of black gold and oil products, financing various projects in the raw material sector of the economy of the participating countries. The scale of influence of commodity associations operating in the markets of metals on the international trade in these goods has been rather limited so far. If the task of establishing control over national natural resources, reducing dependence on Trans National Corporations, establishing a deeper processing of raw materials and marketing products on their own, they are generally more or less successful, then attempts to establish fair prices and coordinate the market politicians in most cases proved to be ineffective. The main reasons for this are as follows: heterogeneous composition of participants (many associations include developed countries along with developing countries), which causes serious contradictions between states with different interests; the recommendatory, rather than binding, nature of decisions, mainly due to the oppositional policies of developed countries or those in the sphere of influence of TNCs in developing countries; incomplete involvement in associations of the main producers and exporters of raw materials and, accordingly, an insufficiently high share of participating countries in world production and exports; the limited nature of the stabilization mechanism used (in particular, only MABS makes attempts to set minimum prices for aluminum).

The vast majority of activities carried out by associations for peanuts, peppers, coconuts and their products, tropical timber, cuprum and phosphates, concerns the solution of internal economic problems of production and processing of these types of raw materials. This orientation in the activities of these organizations is explained by specific economic conditions. We are talking about the development of the situation in the relevant world markets, which is relatively favorable for exporters; about fears of causing increased competition for substitutes; about the unwillingness of some participants to interfere in international trade data goods; about strong opposition from Western companies. An example is the work of the Asia-Pacific Cocos Community. The members of this firm have adopted a long-term program for the development of national coconut farms, the diversification of the export of coconut palm products. In the conditions of a favorable world market situation, this allowed the members of the association to turn the corresponding industry agriculture into a significant source of export earnings and strengthen its foreign economic position. The rest of the trade associations exist mostly formally, which is mainly due to organizational difficulties, the divergence of interests of the main exporters and the extremely unfavorable for them conjuncture world market. Definition of OPEC. OPEC (Organization of the petrolium exporting countries) is a voluntary intergovernmental economic firm whose task and main goal is to coordinate and unify the oil policy of its member states. OPEC is looking for ways to ensure the stabilization of prices for petroleum products in the world and international black gold markets in order to avoid fluctuations in oil prices that have harmful consequences for OPEC member states. The main goal is also return Member States of their investment in oil industries industry with receipt arrived.

OPEC in 1960-1970s:

Way to success

The company was established in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Republic of Venezuela to coordinate their relations with Western oil companies. As an international economic company, OPEC was registered with the UN on September 6, 1962. Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), Nigeria (1971) later joined OPEC, Ecuador(1973, withdrew from OPEC in 1992) and Gabon (1975, withdrew in 1996). As a result, OPEC united 13 countries (Table 1) and became one of the main participants in the global black gold market.

The creation of OPEC was caused by the desire of countries - exporters of black gold to coordinate efforts to prevent a decline in world oil prices. The reason for the formation of OPEC was the actions of the "Seven Sisters" - a world cartel that united the organizations "British Petroleum", "Chevron", "Exxon", "Gulf", "Mobile", "Royal Dutch Shell" and "Texaco". These firms, which controlled the processing of crude black gold and the sale of petroleum products throughout the world, unilaterally reduced the purchase price of oil, on the basis of which they paid income taxes and (rent) for the right to develop natural resources to oil-producing countries. In the 1960s, there was an excess of offer black gold, and the original purpose of creating OPEC was an agreed limit ground oil extraction just to stabilize prices. In the 1970s, under the influence of the rapid development of transport and the construction of thermal power plants, the world's oil demand rose sharply. Now the oil-producing countries could consistently increase the rent payments of oil producers, significantly increasing their income from the export of black gold. At the same time, the artificial containment of oil production led to an increase in world prices.

In 1973-1974, OPEC managed to achieve a sharp increase in world oil prices by 4 times, in 1979 - by another 2 times. The formal reason for the price gouging was the Arab-Israeli war of 1973: demonstrating solidarity in the fight against Israel and its allies, the OPEC countries for some time stopped shipping black gold to them altogether. Due to the "oil shock" 1973-1975 turned out to be the most severe world economic collapse since the Second World War. Having formed and strengthened itself in the fight against the Seven Sisters oil cartel, OPEC itself became the strongest cartel in the global black gold market. By the early 1970s, its members accounted for approximately 80% of proven reserves, 60% of production, and 90% of black gold exports in non-socialist countries.

The second half of the 1970s was the peak of OPEC's economic prosperity: demand oil remained high, soaring prices brought enormous arrived exporting countries of black gold. It seemed as if this prosperity would last for many decades.

The economic success of the OPEC countries had a strong ideological significance: it seemed that the developing countries of the "poor South" managed to achieve a turning point in the struggle with the developed countries of the "rich North". The success of OPEC was superimposed on the rise of Islamic fundamentalism in many Arab countries, which further enhanced the status of these countries as a new force in world geo-economics and geopolitics. Realizing itself as a representative of the "third world", in 1976 OPEC organized the OPEC International Development Fund - a financial institution that provides assistance to developing countries that are not members of OPEC.

The success of this business associations prompted other third world countries exporting commodities (, bauxite, etc.) to try to use their experience, also coordinating their actions to increase incomes. However, these attempts were generally unsuccessful, because other commodities were not in such high demand as oil.

OPEC in 1980-1990s

Weakening trend

The economic success of OPEC was, however, not very sustainable. In the mid-1980s, world oil prices almost halved (Figure 1), sharply reducing income OPEC countries from "petrodollars" (Fig. 2) and burying hopes for long-term prosperity.

4. Protecting the environment for the benefit of present and future generations.

5. cooperation with non-OPEC countries in order to implement initiatives to stabilize the global black gold market.

Prospects for the development of OPEC in the 21st century

Despite the difficulties of control, oil prices remained relatively stable throughout the 1990s compared to the fluctuations they experienced in the 1980s. Moreover, since 1999, oil prices have gone up again. The main reason for the trend change was the OPEC initiatives to limit oil production, supported by other major oil-producing countries that have observer status in OPEC (Russia, Mexico, Norway, Oman). Current world oil prices in 2005 reached a historic high, exceeding $60 per barrel. However, adjusted for inflation, they still remain below the 1979-1980 level, when in modern terms it exceeded $80, although they exceed the level of 1974, when the price was $53 in modern terms.

The development outlook for OPEC remains uncertain. Some believe that firms managed to overcome a crisis second half of the 1980s - early 1990s. Of course, the former economic strength, as in the 1970s, cannot be returned to it, but in general, OPEC still has favorable opportunities for development. Other analysts believe that the OPEC countries are unlikely to be able to comply with the established oil production quotas and a clear unified policy for a long time. An important factor in the uncertainty of OPEC's prospects is associated with the vagueness of the ways of development of world energy as such. If serious success is achieved in the use of new energy sources (solar energy, atomic energy, etc.), then the role of black gold in global economy will decrease, which will lead to a weakening of OPEC. Official forecasts, however, most often predict the preservation of black gold as the main energy resource of the planet for the coming decades. According to a report by the International Energy forecast- 2004, prepared by the information department under the Ministry of Energy USA, demand on oil will grow, so that with existing reserves of petroleum products, oil fields will be depleted by about 2050. Another factor of uncertainty is the geopolitical situation on the planet. OPEC took shape in a situation of a relative balance of power between the capitalist powers and the countries of the socialist camp. However, today the world has become more unipolar, but less stable. On the one hand, many analysts they fear that the United States, as the "world policeman," may begin to use force against those who pursue economic policies that do not coincide with America's interests. The events of the 2000s in Iraq show that these predictions are justified. On the other hand, the rise of Islamic fundamentalism could increase political instability in the Middle East, which would also weaken OPEC. Since Russia is the largest oil-exporting country that is not a member of OPEC, the issue of our country's entry into this company is periodically discussed. However, experts point to the discrepancy between the strategic interests of OPEC and the Russian Federation, which is more profitable to remain an independent force in the black gold market.

Consequences of OPEC activities

The high revenues received by the OPEC countries from oil exports have a dual effect on them. On the one hand, many of them manage to improve the standard of living of their citizens. On the other hand, petrodollars can become a factor slowing down economic development.

Among the OPEC countries, even the richest in black gold (Table 4), there is not a single one that could become sufficiently developed and modern. Three Arab countries - Saudi Arabia, the United Arab Emirates and Kuwait - can be called rich, but not developed. An indicator of their relative backwardness is at least the fact that all three still retain feudal-type monarchical regimes. Libya, the Republic of Venezuela and Iran are at about the same low level of prosperity as Russia. Two more countries, Iraq and Nigeria, should be considered by world standards not just poor, but very poor.

Membership in OPEC

Full members of OPEC can only be founding states and those countries whose applications for admission were approved by the supreme body of OPEC - the Conference. Any other country with significant crude oil exploitation and interests fundamentally similar to those of OPEC member countries can become a full member, provided that its admission is approved by a three-quarters majority, including the votes of all founding members. The status of an associate member cannot be granted to any country that does not have interests and goals that are fundamentally similar to the interests of OPEC member states.” Thus, in accordance with the OPEC Charter, there are three categories of member states: founder-members of the company that took part in the Baghdad meeting in 1960 and signed the original agreement to create OPEC; Full Members (Founders plus those countries whose application for membership was confirmed by the conference); Associate members who do not have full membership, but under certain circumstances may take part in the OPEC conference.

Functioning of OPEC

Representatives of member states meet at the OPEC conference in order to coordinate and unify the policies of their countries and develop a common position in international markets. They are supported by the OPEC Secretariat, managed by the Board of Directors and headed by the Secretary General, the Economic Commission, the Inter-Ministerial Monitoring Committee.

Representatives of Member States discuss a specific situation in the bulletins of forecasts of the development of the fuel market (for example, an increase in economic quotations or innovative changes in the fuel industry). After that, they discuss their next steps in the field of oil policy. As a rule, all this comes down to a decrease or increase in oil production quotas or the establishment of equal oil prices.

Black gold production quota. The influence of OPEC on the world market. OPEC oil reserves

OPEC's charter requires the company to seek stability and prosperity for its members in the global oil market. OPEC coordinates the extractive policies of its members. One way of such a policy is to set quotas for the sale of black gold. In case the requirements consumers oil is growing, and the market cannot be saturated, it is necessary to raise the level of oil production, for which a higher quota is set. Legally, raising the quota is possible only in the event of a rapid increase in oil prices in order to avoid a crisis similar to the crisis of 1978, when oil prices quadrupled. A similar measure is provided for by the charter in relation to the case of a rapid fall in prices. OPEC is very much involved in world trade and its leadership is aware of the need for a radical reform of the system international trade. Back in 1975, OPEC called for the creation of a new economic order based on mutual understanding, justice, aimed at achieving the well-being of all the peoples of the world. OPEC is also prepared for the oil crisis - there is an OPEC reserve oil fund, which totaled 801.998 million barrels at the end of 1999, which is 76% of the world's oil and petroleum products reserves.

OPEC system. The structure of OPEC consists of the Conference, Committees, Board of Governors, Secretariat, Secretary General and Economic Commission of OPEC.

Conference. The supreme body of OPEC is conference, consisting of delegations (up to two delegates, advisers, observers) representing Member States. Usually delegations are headed by ministers of black gold, mining or energy. Meetings are held twice a year (but there are also extraordinary meetings and meetings, if necessary), usually at the headquarters in Vienna. determines the main directions of OPEC policy, and decides on the budget and reports and recommendations submitted by the Council managers. The Conference also elects the President, whose post is held until the next meeting, approves the appointment of members of the Council managers appoints the chairman and vice-chairman of the council, General Secretary, Deputy General Secretary and an auditor. Decisions (with the exception of procedural matters) require the unanimous approval of all full members (there is a right of veto and no right of constructive abstention). The conference also decides on the entry of new members. Board of Governors. The board of directors can be compared to the board of directors in a commercial enterprise or corporations.

In accordance with Article 20 of the OPEC Charter, the Board of Governors performs the following functions:

management of the company's affairs and execution of the decisions of the conference;

consideration and resolution of issues raised by the Secretary General;

drafting budget companies, submitting it for the approval of the Conference and its execution;

Appointment of the Auditor of the firm for a period of up to one year;

Consideration of reports of the Auditor and his reports;

Preparation of draft decisions for the Conference;

Convening extraordinary meetings of the Conference;

Economic Commission. The Economic Commission is a specialized structural division of OPEC operating within the Secretariat, whose task is to assist the company in stabilizing the oil market. The Commission consists of the Council of the Commission, national representatives, the Headquarters of the Commission, the Coordinator of the Commission, who ex-officio is the Director of the Research Department.

Interministerial Monitoring Committee. The Inter-Ministerial Monitoring Committee was founded in March 1982 at the 63rd (extraordinary) meeting of the conference. The Inter-Ministerial Monitoring Committee is chaired by the President of the Conference and includes all heads of delegations to the Conference. The committee monitors (annual statistics) the situation and proposes action to the conference to address the relevant problems. Committee meetings are annual, and usually precede meetings of the Conference participants. Within the Committee there is also a sub-committee on statistics, established at the ninth meeting of the committee in 1993.

OPEC Secretariat. The OPEC Secretariat functions as the headquarters. He is responsible for the performance of the firm's executive functions in accordance with the provisions of the OPEC Charter and the directives of the Board of Governors.

The Secretariat consists of the Secretary General and his Administration, the Research Department, the Information Department, the Academic Institute of Energy Management, the Oil Market Analysis Department, the Human Resources Department, the Public Relations Department, the Legal Department.

OPEC Multilateral and Bilateral Assistance Institutions and OPEC Trust USD - CAD, OPEC Multilateral Assistance Institutions:

1.Arab General Directorate for Agricultural Investment and Development (Sudan)

2. Gulf Arab States Program for United Nations Development Organizations (Saudi Arabia)

3. Arab Monetary Fund (United Arab Emirates)

4. Arab Fund for Economic and Social Development (Kuwait)

5. Arab Trade Finance Program (United Arab Emirates)

The small share of the export of oil money to developing countries is explained by the fact that, despite the higher profitability of foreign investments than in the West, these countries do not have a developed economic, and in particular financial, infrastructure that is capacious enough to absorb such an amount of funds by national and international financial markets. The lack of political stability and sufficient guarantees for foreign capital is no less an obstacle to the flow of petrodollars within the developing world.

Some members of OPEC provided economic assistance even before the oil crisis. However, its relative size was insignificant, and more than half of the funds went to the Arab countries. In 1970-1973, the countries opposing Israeli aggression received $400 million annually in economic aid from Saudi Arabia, Kuwait, and Libya.

A sharp, multidirectional change in the economic situation of oil exporters and other developing countries has led to the emergence of a new major source of assistance. Of the $42 billion given to the developing world in 1975, 15% went to OPEC member countries. After the rise in oil prices in 1973-1974, 10 of the 13 member countries of OPEC began to provide assistance.

Assistance from OPEC Member States Provided to Developing Countries on Concessional Terms

(in million dollars)

Official concessional aid, or development aid, accounts for 70-80% of OPEC's commitments to other developing countries. As a rule, more than 70% of these funds are provided free of charge, and the rest - on an interest-free or low-interest basis.

As can be seen from the table, the bulk of aid on concessional terms is provided by the sparsely populated countries of the Persian Gulf. These countries also have a large share of aid in GNP, both in terms of net outflows and aid on concessional terms. True, in the policy of Kuwait, unlike other Arab monarchies, there has appeared a tendency to prefer the provision of loans at the world average or higher interest rates (9-11%), which accordingly affects the structure of this country's aid.

Among other OPEC member countries, the largest borrowers are Iran, Libya and the Republic of Venezuela. Lenders such as the Republic of Venezuela and Iran provided loans mainly on commercial terms. It seems that in the future, the Republic of Venezuela and Qatar, due to the expansion of development financing programs (and due to a lack of funds for domestic needs), may reduce or even stop providing assistance. The share of aid in the GNP of OPEC members decreased from 2.71% in 1975 to 1.28% in 1979. For the countries of the Persian Gulf, this figure averages 3-5%. It should be noted that the developed capitalist countries provide a much smaller part of their national product in the form of official aid. On the whole, however, the transfer of financial resources (credits, subsidies, capital investments, etc.) exceeded the amount of assistance and was at the level of $7-9 billion annually in the 1970s. It should also be added that the Eurocurrency market is a certain channel for the flow of OPEC funds to developing countries.

OPEC member countries provide assistance mainly through bilateral or regional relations. Some of the funds go to developing countries through the mediation of the IMF and IBRD.

OPEC greed


If producers keep prices high despite falling demand, the world will end fossil fuel reliance surprisingly quickly.

Statements about the resumption of economic growth, which were made last week in Japan, France and Germany, and soon England and America are expected, may also signal the end of the Great Recession of 2007-09, although it was very difficult. However, this month we may receive a signal of the beginning of the end of something more historic and significant: the oil age.

Considering how dismal the world looked at the start of this year, the resumption of growth so soon looks quite remarkable. But it is even more remarkable that the world is coming out of such a powerful financial shock with the main fuel - black gold - the price of which is almost 70 dollars per barrel, which is seven times higher than ten years ago and twice the level in March.

That is, the recovery is going even faster than we think, but oil is growing again? Not at all. It is believed that this is a rather opaque market, and the amount of petroleum products reserves is a state secret in many countries. However analysts Banc of America Securities-Merrill Lynch has calculated that in the second quarter of this year, global oil demand is three million barrels a day lower than at the beginning of 2008. They do not expect it to return to this level before 2011

No, the explanation for this rise in the price of oil (and therefore for oil), which could hurt the recovery of the economy, lies on the supply side. As well as an explanation of the prospects for further price increases up to exorbitant 147 dollars per barrel, as in July 2008 and beyond.

At this point in the analysis, the pessimists are turning to the concept of "black gold peak" (or, as real oil analyst nerds would say, "Hubbert peak"). The point is that the planet's oil reserves are approaching the point where production from the fields will begin to decline (and, according to some, they have already reached this point). Pay no attention to them. There is plenty of black gold in the world. There is not enough investment in deposits and production. And the reason for this is a four-letter word: OPEC.

To keep prices high, the cartel of oil-producing countries purposefully cut production by nearly five million barrels a day, more than the decline in global demand. OPEC countries account for only about 35 percent global supply, but non-OPEC Russia provides another 11.5 percent and assists them. What's more, the Gulf countries, which dominate OPEC, have the largest reserves at the lowest production costs, making it easier for them to turn the valves on and off.

In the early years of this decade, OPEC-leading Saudi Arabia often said that its ideal price would be $20-$25 a barrel. Now they are talking about 70-75 dollars. Of key importance is that nationalists from OPEC and Russian extortionists have blocked the big Western oil companies from developing their oil fields according to their desires, pushing them to other fields that require much more investment. There even before financial crisis has been slow, as a sudden boom in development and expansion has spurred higher costs for labor and equipment. After the start financial crisis it has drastically declined.

If prices remain high, this should change in the next ten years. A large shelf has been discovered, and Angola has demonstrated how fast development can be. In seven years, it has tripled its oil production, joined OPEC, and now rivals Nigeria for the title of sub-Saharan Africa's largest oil-producing country - and thus the leading oil-rich but failed economy. That's why US Secretary of State Hillary Clinton put aside sentiments about human rights and visited Angola on her African tour to prevent them from finally becoming friends with China.

However, if OPEC continues to abuse its influence and keep prices abnormally high, something even more important will happen by the time non-OPEC production rises. In the 1970s, Saudi Oil Minister Zaki Yamani, famous for his aphorisms, said the wonderful words: "The Stone Age did not end because the world ran out of stones. Nor will the Oil Age end because we run out of oil." It will end when consumers can no longer tolerate the greed of oil-producing countries and begin to develop a replacement for black gold. Arabs should see a warning signal in the fact that the first product unveiled by Fritz Henderson, boss of the freshly bankrupt (and quasi-nationalized) General Motors concern, is a hybrid Chevrolet Volt that is said to be able to travel 230 miles on a single gallon of gasoline. They may see this as nothing more than a political move as governments around the world go to great lengths to give their stimulus packages a green tint by issuing subsidies to anyone who claims to develop cleaner technologies. However, here's what they need to remember. When the oil shocks of the 1970s struck Japan the second blow after a sharp revaluation of the yen, its government and industry switched from the production of cheap auto junk to the creation of semiconductors, consumer electronics and small cars- and in just ten years have become leaders in these areas.

This time around, scientists and engineers around the world are once again battling to bring about such a transformation - but nowhere are these efforts more evident than in China, the world's second largest black gold acquirer. There, politicians are fully aware of the need for currency revaluation, which will hit manufacturers of cheap products that do not use energy-saving technologies, and the need to protect the environment is extremely urgent.

In addition, dozens of governments are eager to show their green credentials at the Copenhagen climate change summit this December, pledging to curb carbon emissions from coal and oil and seeking to plug fiscal holes with tax revenue. And the tax on fuel seems to them an extremely successful solution.

Conventional projections based on extrapolation of past trends do not foresee a significant role for electric vehicles or fossil fuel power plants in the next 20-30 years. However, imagine the effect $100-$200 a barrel oil will have on hundreds of thousands of Chinese (Japanese, European and American) scientists seeking to do in the field of solar energy and hybrid cars what has been done over the past decade in the field of mobile phones and computers.

Then the usual predictions, as always, will be wrong. The oil age that began a hundred years ago in America will come to an end.

OPEC basket

The term "basket" OPEC (organization of the countries-exporters of oil oil basket or, more precisely, organization of the countries-exporters of oil (OPEC) Reference Basket)- was officially introduced on January 1, 1987. Its price value is the arithmetic average of physical prices for the following 13 grades of oil (the new composition of the basket was determined on June 16, 2005).

Average annual prices of the OPEC basket (in US dollars)

The price of the OPEC oil "basket" has reached a maximum value in more than two and a half weeks

The price of OPEC's oil "basket" reached its maximum value in more than two and a half weeks. As of the end of the trading day on August 24, the OPEC "basket" has risen in price by 62 cents, and its price officially amounted to 72.89 dollars per barrel. - the highest figure since 6 August.

Recall that above the level of 72 dollars per barrel. The price of the "basket" has been maintained for three trading days in a row - since August 20.

Oil "basket" OPEC (organization of the countries-exporters of oil Reference Basket of crudes) is a cumulative arithmetic average of the price of black gold, which is supplied to the world market by OPEC countries. From January 2009 The "basket" is represented by the following 12 oil brands: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran Heavy (Iran), Basra Light (Iraq), Kuwait export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Republic of Venezuela), RBC reports.

Dizionario italiano

OPEC- [o:pɛk], die; = Organization of the Petroleum Exporting Countries (Organisation der Erdöl exportierenden Länder) … Die deutsche Rechtschreibung

OPEC- ABBREVIATION ▪ Organization of the Petroleum Exporting Countries … English terms dictionary

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OPEC is translated from English as the Organization of Petroleum Exporting Countries. The purpose of creating OPEC was and is to control oil production quotas and oil prices.

OPEC was established in September 1960 in Baghdad. The list of members during the existence of the organization changes periodically and for 2018 (July) it includes 14 countries.

The initiators of the creation were 5 countries: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Later, these countries were joined by Qatar (1961), Indonesia (1962), Libya (1962), United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975). year), Angola (2007) and Equatorial Guinea (2017).

Today (February 2018), OPEC includes 14 countries:

  1. Algeria
  2. Angola
  3. Venezuela
  4. Gabon
  5. Kuwait
  6. Qatar
  7. Libya
  8. United Arab Emirates
  9. Nigeria
  10. Saudi Arabia
  11. Equatorial Guinea
  12. Ecuador

Russia is not a member of OPEC.

The countries included in the organization control 40% of all oil production on earth, this is 2/3. The leader in oil production in the world is Russia, but it is not a member of OPEC and cannot control the price of oil. Russia is an energy dependent country. The level of economic development and well-being of Russians depends on its sale. Therefore, in order not to depend on oil prices on the world market, Russia should develop other sectors of the economy.

So, several times a year, OPEC ministers meet for meetings. They give an assessment of the state of the world oil market, predict the price. Depending on this, decisions are made to reduce or increase oil production.

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OPEC - what is it? Transcription, definition, translation

OPEC is an international cartel of oil producing and exporting countries., created to coordinate the volume of its production and thus influence its price. The abbreviation OPEC is a Russian transcription of the English abbreviation OPEC, the decoding of which is as follows: Organization of Petroleum Exporting Countries, which in Russian means "organization of oil exporting countries."

Organization of the Petroleum Exporting Countries

OPEC includes 12 countries that are lucky with oil reserves. Here list of OPEC member countries: UAE, Iran, Iraq, Kuwait, Saudi Arabia, Angola, Qatar, Libya, Algeria, Nigeria, Ecuador and Venezuela. Russia is not a member of OPEC for historical reasons: the organization was founded in 1960, when the USSR was not yet a key player in the oil market. Today, Russia has difficult relations with OPEC, although our country is an "observer" in this organization.

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OPEC's decisions on oil prices are one of the most important factors in fundamental analysis. The dynamics of trading in this commodity depends on them.

Today you will learn what OPEC is and how OPEC oil exporting countries influence the extraction of raw materials, what kind of organization it is, how it regulates quotas for obtaining black gold from the earth's interior, what relations it has with Russia and many other important things for a trader and investor questions.

What is OPEC in simple words

is an international organization that brings together the governments of 15 oil exporting countries. Initially, it included 5 countries: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. It was created during the Baghdad conference in 1960. Subsequently, other states, such as Qatar, Libya, the United Arab Emirates, Nigeria and others, joined this country. Indonesia and Gabon were also members of this organization at one time, but now they are not in its composition.

OPEC is short for The Organization of the Petroleum Exporting Countries (OPEC) - Organization of Petroleum Exporting Countries.

From 1960 to 1965, the headquarters of the OPEC oil exporters was located in Geneva, but already in September 1965 it began to be permanently located in Vienna.

The purpose of the organization is to unite oil exporting countries to regulate economic policy in this industry: to ensure adequate prices for black gold, to ensure constant and fair supplies to consumer countries.

In simple words, OPEC is an international organization created to ensure that all oil exporters and its consumers feel good.

Wikipedia says that OPEC is an organization that controls two-thirds of all oil reserves in the world. About a third of black gold production and half of exports fall on 15 countries that are members of this organization.

OPEC countries and OPEC oil production

Today, the organization includes 15 countries (OPEC oil exporting countries):

  1. Kuwait.
  2. Qatar.
  3. Algeria.
  4. Libya.
  5. Iraq.
  6. Equatorial Guinea.
  7. Venezuela.
  8. Iran.
  9. Nigeria.
  10. Congo.
  11. Gabon.
  12. Ecuador.
  13. Angola.

Despite the fact that the organization includes OPEC oil exporting countries from various parts of the world, the Kingdom of Saudi Arabia (KSA), as well as other states located on the Arabian Peninsula, has the greatest influence.

The thing is that it is the KSA that has the ability to produce a huge amount of oil, while other states have both smaller oil reserves and less modern technologies.

It is for this reason that the policy of the organization is largely determined by the monarchies of the Arabian Peninsula, although Iran, Venezuela and other countries also have a voice.

OPEC countries, like other countries of the world, participate in world politics, therefore they are forced to follow various kinds of trends.

For example, Iran, which was under Western sanctions for a long time, has become less and less involved in OPEC affairs in recent years, because its oil was not bought, fearing hostile actions from the country that imposed these sanctions (the United States, Britain and other states). If in the past the headquarters of this organization was in Geneva, Switzerland, today it is located in the capital of Austria - Vienna.

This organization is made up of dependent from the oil state. Any state can apply for membership. Let us consider the states that are part of this intergovernmental organization in more detail.

Countries of Asia and the Arabian Peninsula

This category includes Iran, Iraq, Qatar, Kuwait, UAE and Saudi Arabia. Until January 2009, this list also included Indonesia. The countries of this category are characterized by a monarchical system. There have been constant conflicts for black gold since the middle of the twentieth century. In particular, wars are created specifically to destabilize the market for this raw material.

South American countries

This category includes Venezuela and Ecuador. The first was one of the initiators of the creation of this organization. Recently, the economic situation in this country leaves much to be desired. Its national debt has grown due to the political crisis and the decline in oil prices. At one time, this country was quite developed, since oil was expensive. The example of Venezuela tells us how important diversification is.

As for Ecuador, this country has a very large public debt ( half of GDP). In addition, it had to pay $ 112 million for not fulfilling obligations of forty years ago, which greatly crippled the economy.

African countries

This country is characterized by a low standard of living, including due to the glut of the oil market. In addition, these OPEC member states have a very large population with high unemployment.

How OPEC affects the price of oil in examples

OPEC oil production quotas are powerful tools to influence the price of black gold, which are designed to reduce supply when demand is high. This practice has proven to be highly effective for several decades.

The quota is the amount of oil that can be supplied to the participants of this intergovernmental organization.

This tool was first used in 1973, when the issue size was reduced by 5%. As a result, the cost of black gold increased by 70%. Another consequence of this decision is the war, where the parties to the conflict were Israel, Syria and Egypt.

When the members of this organization make a decision, trading activity in the financial markets increases sharply, and this is a good opportunity for a trader to earn money.

Major OPEC Decisions on Oil OPEC Decisions on Oil Price:

  1. The main task of this organization is to coordinate the actions of countries that supply oil to the oil markets. The organization is engaged in the unification of oil policy, which is very important both for the organization as a whole and for each exporting country separately.
  2. Another task of OPEC is to stabilize oil supplies, however, as history has shown, in reality this is not the case. Many OPEC countries (with the exception of the developed countries of the Arabian Peninsula) are Third World countries that have neither technology nor military power. KSA and other Arab countries can live without oil, but for other countries oil is the only source of income (for example, Iran and Gabon). As a result, they use oil as a weapon, constantly threatening other world states with an oil blockade if they do not comply with any decisions.

Iran is constantly threatening to attack American ships that guard peace in the Arabian Gulf, demanding the lifting of sanctions.

The influence of OPEC is carried out in much the same way as the influence of any other organization. In some cases, OPEC countries may reduce oil production, which will lead to an increase in its cost. They may also impose an oil embargo.

In the last century, this led to an energy crisis in Western Europe, when some EU countries refused to support Arab countries during a defensive war with Israel. After that, footage spread around the world as the head of the Netherlands was forced to commute to work by bicycle.

OPEC is also trying to coordinate its actions with Russia in order to more effectively influence world prices.

  • Some Western countries believe that OPEC is gradually monopolizing the oil market and is trying to exclude Iran from the cartel, since this country is subject to sanctions by many countries of the world and discredits OPEC by its mere presence at the negotiating table.

Despite numerous accusations, OPEC plays an extremely important role in the global economy and politics, since even the most advanced technologies are not able to replace oil, which is the main source of energy on the planet.

OPEC Oil Production - Quotas and Regulation

The value of OPEC oil production quotas is affected by the global situation in the black gold market. An additional element of regulation is control over compliance with agreements between the participating countries. Another key concept of regulation is the “price corridor”. If the price goes beyond its limits, then a meeting is held, and the participants agree to adjust the quotas so that the quotations for raw materials remain within the established limit.

OPEC oil cuts are a simple but effective way to regulate this market.

Quotas for oil production are set on the basis of oil reserves and technologies that are available in the country for its production. That is why KSA supplies the largest amount of oil to the market. This is the most developed country of the cartel, which has the latest technology and is able, with the help of one of the strongest armies in the world, to provide security of oil supplies to any point on Earth.

Also, quotas for the supply of oil can be reduced if the price of “black gold” falls. Some EU countries believe that in this way the cartel artificially inflates prices, but this is the sovereign right of all cartel members.

Also, the policy of OPEC in the past allowed the formation of a unified policy of struggle against oil corporations. As a result, both the attitude towards the cartel members and the authority of this world organization have changed. Since the organization includes almost all the largest oil suppliers, the effectiveness of the decisions of this organization is not in doubt.

OPEC basket and oil prices

The OPEC oil price basket was first discussed in 1987. This is a collective concept that includes the prices of all grades of oil produced in the participating countries, from which the arithmetic average was derived.

The price corridor is set based on the value of the basket. Its highest price was recorded on July 3, 2008, when the average oil price of OPEC member states was at almost $141 per barrel.

Interesting situation about Indonesia. Despite the fact that it withdrew from OPEC in 2009, its oil was included in the basket in 2016.

History of OPEC relations with Russia

In the USSR in the 60s of the last century, the attitude towards OPEC was initially positive, because this organization served as a real counterbalance to the oil monopolies of the West in the conditions of the Cold War. The Soviet leaders then believed that if it were not for some kind of brake in the face of US allies among the developed Middle Eastern states, then the OPEC member countries in general could go almost along the path of communism, although this was impossible. This, as the future showed, did not happen.

At the same time, the USSR was, as it were, "aside" and was in no hurry to join the newly created organization, even despite the presence of allies in it. The Soviet Union did not like the then charter of the organization, in particular, the inability to become a member of the first class. After all, only the founder could become one. In addition, there were points incompatible with the command economy (in particular, about investments from Western countries).

OPEC was first brought to the top of world politics during the first energy crisis of 1973-74. It broke out as a result of the oil embargo, which was introduced by the oil-producing Arab countries against the Western countries - allies of Israel, and OPEC supported this action in full. Then many Western countries returned to the Middle Ages, as they ran out of fuel and energy. After this incident, world prices made a sharp threefold jump and brought the world oil market to a completely new stage of development.

At that time, the USSR, already among the world's largest suppliers of "black gold", even considered the possibility of direct entry into OPEC, where its then friends of the USSR Iraq, Algeria and Libya played not the last roles. Nevertheless, things did not come to the point of entry, and this, most likely, was prevented by the OPEC Charter.

The fact is that he could not become a full member of the USSR, because he was not among the founders of this organization. Secondly, the Charter contained certain provisions that were then absolutely unacceptable for a closed and inefficient communist economy. For example, members of the organization had to ensure freedom of investment in their oil industry for oil consumers, namely the United States, Britain, France and other Western countries, as well as guarantee income and return on investors' capital. In the USSR, the concept of “private property” was rather vague, so the Soviet authorities could not provide this condition.

OPEC and modern Russia

As for modern Russia, its history of relations with OPEC began in 1998, when it became an observer. From that moment on, she takes part in the Conferences of the organization and other events related even to countries that are not part of it. The Russian ministers regularly meet with the organization's top officials and colleagues. In relations with OPEC, Russia has also been the initiator of certain activities, in particular, Energy dialogue.

There are also difficulties in relations between OPEC and Russia. First of all, the first is afraid that Russia will increase its market share. In response to this, OPEC is going to reduce oil production, provided that the Russian Federation does not agree to do this. That is why it is not possible to restore world oil prices. In general, OPEC and Russian oil is a kind of sore point in the relationship.

In general, relations between Russia and OPEC are favorable. In 2015, it was even invited to join the ranks of this country, but Russia decided to remain in the role of an observer.

The oil cartel did not initially have the political influence it has now. At the same time, even the participating countries did not fully understand why they were creating it, and their goals were different. But now it is an important player in the black gold market, and here are some interesting facts about it.

  1. Before OPEC was created, there were 7 transnational corporations that completely controlled the oil market. After this cartel appeared, the situation changed radically, and the monopoly of private companies disappeared. Now only 4 companies are left of them, because some were absorbed, and some merged.
  2. The creation of OPEC has changed the balance of power to such an extent that it now decides what the price of oil will be. If the price drops, production immediately decreases, and the cost of black gold increases. Of course, the strength of the organization at the moment is not as big as it used to be, but still decent.
  3. OPEC countries control 70% of the world's oil. The disadvantage of this statistic is that production is not subject to independent audit, so you have to take OPEC's word for it. Although it is likely that this size of OPEC oil reserves is true.
  4. OPEC was able to create a powerful energy crisis by increasing the price by 450%. Moreover, this decision was deliberate and was directed against the United States and other states supporting Israel during the war with Egypt and Syria. On the other hand, the emergence of the crisis led to the fact that many countries began to form strategic reserves of valuable fuel.

And finally, we will take out the main interesting fact separately. Despite the fact that OPEC has a significant impact on the price of oil, it does not directly depend on it. Prices are set during trading on stock exchanges. It's just that the cartel knows the trader's psychology well and knows how to get him to make deals in the direction they need.

OPEC and traders

It would seem that the union of countries producing 1.3-1.4 billion tons of oil in just 1 year and providing two-thirds of export supplies to the world market is able to effectively control prices. However, life has shown that in reality everything is more complicated. Quite often, especially in recent times, OPEC's efforts to adjust prices either do not produce the desired effects or even lead to unexpected negative results.

With the introduction in the early 1980s, the financial market began to have a much greater influence on the formation of prices for “black gold”. If in 1983 positions in oil futures for 1 billion barrels of oil were opened on the New York Mercantile Exchange, then in 2011 they were opened already for 365 billion barrels. And this is many times more than the entire world oil production.

In addition to the New York Mercantile Exchange, oil futures are also traded on other exchanges. In addition, there are other financial instruments (derivatives) that are linked to oil.

Because of this, every time OPEC makes some kind of decision to adjust world prices, it actually only points out the intended direction for world prices to change. Players in the financial markets are actively facilitating and taking advantage of fluctuations in fuel prices, thereby seriously distorting the effects that the OPEC measures were designed to have.

Conclusion

OPEC appeared in 1960, when the colonial system of the world was almost destroyed and new independent states began to appear on the international arena, mainly in Africa or Asia.

At that time, their minerals, including oil, were mined by Western companies, the so-called Seven Sisters: Exxon, Royal Dutch Shell, Texaco, Chevron, Mobil, Gulf Oil and British Petroleum. OPEC broke the monopoly of American and British companies (as well as some other countries), freeing many countries from colonial oppression that were occupied by colonial empires. 2 estimates, average: 4,50 ). Please rate, we tried very hard!

OPEC countries and their capitals on the map (list 15) → members of the Organization of Petroleum Exporting Countries (OPEC). Below is a table of OPEC member countries + map, capital, alphabetical list, flags and continents, in English and Russian

No. Flag Letter The country Capital Continent letters
1 BUT Algeria Algeria Africa 5
2 BUT Angola Luanda Africa 6
3 AT Venezuela Caracas South America 9
4 G Gabon Libreville Africa 5
5 And Iraq Baghdad Asia 4
6 And Iran Tehran Asia 4
7 To Congo Brazzaville Africa 5
8 To Kuwait El Kuwait Asia 6
9 To Qatar Doha Asia 5
10 L Libya Tripoli Africa 5
11 O UAE Abu Dhabi Asia 8
12 H Nigeria Abuja Africa 7
13 With Saudi Arabia Riyadh Asia 17
14 E Equatorial Guinea Malabo Africa 21
15 E Ecuador Quito South America 7

Presentation with flags for children and adults: capitals of 15 OPEC countries. Possibility to sort the table alphabetically, select the necessary neighboring states around and their capitals, friendly and unfriendly. Go to a detailed map in Russian, see the surroundings of the city, show the border areas nearby, find and write out the names. How many adjacent neighboring states of the 1st and 2nd order, their location in the region, as indicated

See on the diagram with whom they are neighbors and places nearby, where the nearest city on the border is located. List the names of the continents and parts of the world surrounding the seas and oceans. Find out the number of letters in the name and what it starts with, who is a member of the association of oil exporters from their continent

What is OPEC? International Organization of Petroleum Exporting Countries

Goals: coordination of activities and control of oil production volumes, stabilization of the oil products market and oil prices. To do this, the countries included in the cartel meet 2 times a year at OPEC conferences. Russia has been an observer in the OPEC system since 1998. The headquarters of the organization is Vienna, Austria. The next meeting will take place on December 5, 2018.

Full composition - which countries are members of OPEC + capital:

  1. Algiers, Algiers
  2. Angola, Luanda
  3. Venezuela, Caracas
  4. Gabon, Libreville
  5. Iran, Tehran
  6. Iraq, Baghdad
  7. Congo, Brazzaville
  8. Kuwait City, Kuwait City
  9. Qatar, Doha
  10. Libya, Tripoli
  11. United Arab Emirates, Abu Dhabi
  12. Nigeria, Abuja
  13. Saudi Arabia, Riyadh
  14. Equatorial Guinea, Malabo
  15. Ecuador, Quito

All members of the OPEC conference in English:

Full list - OPEC countries on the map and capitals


The table is alphabetical, it contains all the world's largest oil exporters, which are located on three continents of the earth - Asia, South America, Africa. Conference participants by continent:

  • OPEC member countries Overseas Asia— Iran, Saudi Arabia, Iraq, United Arab Emirates, Kuwait, Qatar
  • South America— Venezuela, Ecuador
  • Africa- Algeria, Angola, Libya, Nigeria, Gabon, Congo, Equatorial Guinea

    • According to the list, a group of fifteen states participating in an international conference in Austria, Europe. An interactive map of their location in the world is also presented.

    Now you know which countries are part of the OPEC Organization of Petroleum Exporting Countries, you can list and show them on the world map 2020

    OPEC- an international intergovernmental organization created by oil-producing countries in order to stabilize oil prices. AT composition of OPEC includes 12 countries: Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Libya, United Arab Emirates, Algeria, Nigeria, Ecuador and Angola. The headquarters is located in Vienna.

    OPEC as a permanent organization was established at a conference in Baghdad on September 10-14, 1960.

    In 2008, Russia announced its readiness to become a permanent observer in the cartel.

    The purpose of OPEC is:

    · Coordination and unification of the oil policy of the Member States.

    · Determination of the most effective individual and collective means of protecting their interests.

    · Ensuring price stability on world oil markets.

    · Attention to the interests of oil-producing countries and the need to ensure: sustainable income of oil-producing countries; efficient, cost-effective and regular supply of consumer countries; fair returns on investments in the oil industry; environmental protection for present and future generations.

    · Cooperation with non-OPEC countries to implement initiatives to stabilize the global oil market.

    Energy and oil ministers of the OPEC member states meet twice a year to assess the international oil market and forecast its development for the future. At these meetings, decisions are made on the actions to be taken to stabilize the market. Decisions on changes in oil production in accordance with changes in market demand are made at OPEC conferences.

    Organizational structure of OPEC

    The structure of OPEC consists of the Conference, Committees, Board of Governors, Secretariat, Secretary General and Economic Commission of OPEC.

    The supreme body of OPEC - Conference ministers of the states that are members of the organization also acts Board of Directors in which each country is represented by one delegate. As a rule, it attracts the closest attention not only from the press, but also from key players in the global oil market.

    The conference determines the main directions of OPEC policy, ways and means of their practical implementation, and decides on reports and recommendations submitted by the Board of Governors, as well as on the budget. It entrusts the Council with the preparation of reports and recommendations on any matter of interest to the organization. The conference itself forms the Board of Governors (one representative from the country, as a rule, these are the ministers of oil, mining or energy). She chooses the president and appoints the general secretary of the organization.


    General Secretary is the highest official of the Organization, the authorized representative of OPEC and the head of the Secretariat. He organizes and directs the work of the Organization. The structure of the OPEC secretariat includes three departments. Secretary General (since 2007) - Abdullah Salem al-Badri.

    Economic Commission of OPEC promotes stability in international oil markets at fair price levels so that oil can maintain its importance as a primary global energy source in line with OPEC objectives, closely monitors changes in energy markets and informs the Conference of these changes.

    Interministerial Committee for monitoring was founded in March 1982 at the 63rd (extraordinary) meeting of the conference. The committee monitors (annual statistics) the situation and proposes action to the conference to address the relevant problems.

    OPEC Secretariat functions as headquarters. He is responsible for the execution of the organization's executive functions in accordance with the provisions of the OPEC Charter and the directives of the Board of Governors.

    OPEC Fund for International Development

    In 1976, OPEC organized the OPEC International Development Fund (headquartered in Vienna, originally this organization was called the OPEC Special Fund). It is a multilateral development finance institution that promotes cooperation between OPEC member states and other developing countries. The Fund's assistance can be used by international financial institutions that provide assistance to developing countries, and all non-OPEC developing countries. The OPEC Fund provides loans on concessional terms mainly of three types: for projects, programs and support of the balance of payments. The Fund's financial resources are formed from voluntary contributions from member states and profits received from the Fund's lending and investment operations.

    Its price value is the arithmetic average of spot prices for grades of oil produced by members of the organization.

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