OPEC

OPEC is a group of major oil-exporting countries that was established in 1960 to manage oil supply and influence prices. Their official aim is to keep the market stable, so that producers earn fairly, consumers get reliable supply, and investors see reasonable returns. OPEC nations produce about 30% of the world's crude oil.

While OPEC says it aims for "stable" markets, critics argue it often prioritizes the interests of oil-producing countries over consumers. By coordinating production cuts, OPEC can push prices higher, which can lead to more expensive fuel, increased inflation, and economic pressure in oil-importing countries. Some analysts even describe OPEC as a cartel, because it can act collectively to influence global supply and prices. On the other hand, supporters argue that without OPEC, oil markets could become more volatile, with extreme price crashes harming producers and potentially disrupting long-term supply.

Until May 2026, the United Arab Emirates (UAE) was also a key member. However, it left to follow its own strategy and expand production independently, claiming that OPEC quotas were holding back the country's economy. The exit of the UAE will significantly weaken OPEC's ability to control global oil prices.

OPEC is an acronym, because it is formed by taking letters from the words "Organization (of the) Petroleum Exporting Countries" and pronouncing them together as a single word, "oh-peck."