OPEC sets production quotas and coordinates petroleum policies among its member countries.
The Organization of the Petroleum Exporting Countries was founded in Baghdad in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Its stated purpose is to coordinate and unify members’ petroleum policies and help stabilize oil markets.
OPEC does not control every barrel of oil traded globally, and its decisions do not guarantee a particular market price. The organization is also distinct from the International Energy Agency, which was created in 1974 and represents energy-consuming countries. OPEC’s headquarters moved from Geneva to Vienna in 1965, where the organization remains based.