OPEC’s Role: The Organization of the Petroleum Exporting Countries, or OPEC, was founded in 1960 and consists of 13 members which account for around 82% of global oil reserves and 30% of oil production. While neither the US nor Russia is part of the group, the latter is part of OPEC+, a wider association that includes 10 non-OPEC countries with shared interests in the oil market. The group, unofficially led by Saudi Arabia, sets production targets for its member countries which influence the global supply of oil, although its targets are not always met by all members. While there are other influencing factors on both the supply and demand side, OPEC+ does exercise a significant influence on the supply and therefore the price of crude oil. OPEC has been accused on many occasions of behaving like a cartel, unnecessarily restricting supply in order to maintain high revenues from oil exports. The group denies this; OPEC’s secretary general Mohammad Barkindo stated earlier this year that the organisation had “no control” over the spike in oil prices following Russia’s invasion of Ukraine. However, it remains true that due to the proportional significance of oil revenues to OPEC members’ economies, the group certainly benefits from high oil prices. (Source: Oil Price on 6 October 2022)
Related Definitions in the Project: The Project Management
