Organisation of Petroleum Exporting Countries

The Organisation of Petroleum Exporting Countries (OPEC) is an intergovernmental organization founded in 1960 by oil-producing developing countries. Its primary objective is to coordinate and unify the petroleum policies of its member countries and ensure the stabilization of oil markets. Recently, OPEC has been in the news due to significant geopolitical events impacting global oil prices, such as the fallout from the US-Israel war on Iran and the Middle East's diplomatic landscape. A notable recent development is the United Arab Emirates' (UAE) departure from OPEC, announced with short notice, stemming from long-standing grievances over production quotas. This exit signals potential shifts in Gulf unity and highlights ongoing tensions within the organization regarding production strategies. The organization remains highly relevant as global powers, like India, seek to 'hedge' against global economic shocks, with oil prices being a critical factor in these strategic considerations.