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OPEC's mission

is to coordinate and unify the petroleum policies of Member Countriesand ensure the stabilization of oil markets in order to secure an efficient, economic andregular supply of petroleum to consumers, a steady income to producers and a fairreturn on capital to those investing in the petroleum industry.The Organization of the Petroleum Exporting Countries (OPEC) is a permanentintergovernmental organization, created at the Baghdad Conference on September 10–14, 1960, byIran, Iraq,Kuwait,Saudi ArabiaandVenezuela. The five Founding Members were later joined by nine other Members:Qatar(1961);Indonesia(1962); Socialist Peoples Libyan Arab Jamahiriya(1962);United Arab Emirates(1967);Algeria (1969);Nigeria(1971);Ecuador(1973) -- suspended its membership from December 1992-October 2007;Angola(2007); and Gabon (1975–1994).read moreThe OPEC MCs coordinate their oil production policies in order to help stabilise the oilmarket and to help oil producers achieve a reasonable rate of return on theirinvestments. This policy is also designed to ensure that oil consumers continue toreceive stable supplies of oil.read moreFree download of the publication "

What is OPEC

" in pdf format.The

OPEC Secretariat

carries out the executive functions of the Organization inaccordance with the provisions of the

OPEC Statute

and under the direction of theBoard of Governors.read moreThe declaration of the Third Summit of Heads of State and Government of OPECMember Countries was issued in Riyadh, Saudi Arabia, on Sunday, 18 November 2007.

The OPEC Statuterequires OPEC to pursue stability and harmony in thepetroleum market for the benefit of both oil producers and consumers. Tothisend, OPEC Member Countries respond to market fundamentals and forecast

developments by coordinating their petroleum policies.12Production quotas are one possible response. If demand grows, or some oilproducers produce less oil, OPEC can increase its oil production to preventa sudden rise in prices or shortfall in supply. OPEC might also reduce its oilproduction in response to market conditions as a means of countering fallingprices or a glut on the market.What is OPEC’s current production ceiling?OPEC’s crude oil production ceilingand individual Member Countryoutput limits are set out in the official OPEC quotas.OPEC production capacity and OPEC Reference Basket (orb) price60Can an OPEC Member Country change the rate of itsoil production?OPECaims to stabilize the international oil market by ensuring a balance insupply and demand. In doing so, Member Countries are allocated productionquotas. These are reviewed periodically in the light of market developmentsand a variety of other indeces.Does OPEC control the oil market?No, OPEC does not control the oil market.OPEC Member Countriesproduce about 40 per cent of the world’s crude oil and 15 per cent of itsnatural gas. However, OPEC’s oil exports represent about 55 per cent of the oil traded internationally. Therefore, OPEC can have a strong influenceon the oil market. OPEC seeks stability in the oil market and endeavours todeliver steady supplies of oil to consumers at fair and reasonable prices. TheOrganization has achieved this in a number of ways: sometimes byvoluntarilyproducing less oil and sometimes by producing more in response to ashortfallin supplies as occurred, for example, during the 1990 Gulf Crisis and the2003war in Iraq.14How does OPEC oil production affect oil prices? The Oil and Energy Ministersof OPEC Member Countries meet at leasttwice a year to review the market situation with the objective of stabilizing it.Should their assessment indicate that demand will rise or outstrip supply,theycall on Member Countries to increase production to meet demand.Conversely,when it is forecast that demand will lag behind supply, they take action toensure a balance is maintained.However, when OPEC makes its production agreements, it does so withthe expectation that non-OPEC producers will actively support theOrganization’s measures, since this will make OPEC’s decisions moreeffective and to everyone’s benefit. The impact of OPEC output decisions on