USA HISTORY

Detailed explanation-1: -OPEC aims to regulate the supply of oil in order to set the price on the world market. The arrival of fracking technology for natural gas in the U.S. has reduced OPEC’s ability to control the world market. The organization was established in 1960 by its founding members Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.

Detailed explanation-2: -OPEC’s objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.

Detailed explanation-3: -OPEC’s main objectives are given below: Unification and coordination of petroleum policies among Member Countries, in order to achieve just and stable prices for petroleum producers. Ensuring of an efficient, economic and regular supply of petroleum to consuming nations and an adequate return of investment.

Detailed explanation-4: -Historically, crude oil prices have seen increases in times when OPEC production targets are reduced. OPEC member countries produce about 40 percent of the world’s crude oil. Equally important to global prices, OPEC’s oil exports represent about 60 percent of the total petroleum traded internationally.

Detailed explanation-5: -In order to keep prices of the oil stable, OPEC countries usually maintain a quota of oil supply. OPEC countries together decide the amount of oil to be produced by them. while keeping in mind the demand for oil in the market, OPEC decides the amount of crude to be produced by member countries.