ORGANIZATION OF THE PETROLEUM EXPORTING COUNTRIES (OPEC)

INTRODUCTION
The Organization of the Petroleum Exporting Countries, commonly known as OPEC, is a permanent intergovernmental organization of oil-exporting countries that aims to coordinate and unify petroleum policies of its member states. For beginners in International Relations, OPEC helps in understanding global energy politics, oil pricing mechanisms, and the strategic importance of hydrocarbons in international affairs. From an OPSC prelims perspective, OPEC is a high-frequency static topic due to questions on its origin, members, objectives, headquarters, and role in global oil markets.

ORIGIN AND BACKGROUND
• Established in 1960
• Founded at the Baghdad Conference
• Original members: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela
• Created to secure fair and stable prices for petroleum producers
• Aimed to protect the interests of oil-producing countries against dominance of multinational oil companies

HEADQUARTERS AND MEMBERSHIP
• Headquarters: Vienna, Austria
• Total members: 13 countries

MEMBER COUNTRIES
• Saudi Arabia
• Iran
• Iraq
• Kuwait
• United Arab Emirates
• Venezuela
• Algeria
• Libya
• Nigeria
• Gabon
• Republic of the Congo
• Equatorial Guinea
• Angola

OBJECTIVES OF OPEC
• Coordinate and unify petroleum policies of member countries
• Stabilize international oil prices
• Ensure regular supply of petroleum to consumers
• Secure steady income for oil-producing countries
• Provide fair return on capital to investors in petroleum industry

KEY FUNCTIONS OF OPEC
• Decides production levels and output quotas
• Influences global crude oil prices through supply management
• Acts as a forum for cooperation among oil-exporting countries
• Collects and publishes data on oil markets

OPEC AND OPEC PLUS
• OPEC Plus is an extended grouping including OPEC members and non-OPEC oil-producing countries
• Russia is a major non-OPEC member of OPEC Plus
• OPEC Plus coordinates oil production to manage global supply and prices

INDIA AND OPEC
• India is not a member of OPEC
• India imports a large share of its crude oil from OPEC countries
• OPEC decisions directly impact India’s energy security and inflation
• India engages with OPEC through dialogue and energy cooperation

CURRENT RELEVANCE
• OPEC Plus decisions on oil production cuts or increases
• Impact of geopolitical tensions on oil prices
• OPEC’s role in stabilizing volatile global energy markets

PRELIMS NOTES AND COMMON CONFUSIONS
• OPEC is not a cartel by law, but acts like one in practice
• OPEC does not include all oil-producing countries
• USA is not a member of OPEC
• OPEC Plus is different from OPEC

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Subject: International Relation

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