In 1960, Iran, Iraq, Kuwait and Saudi Arabia joined Venezuela to form the Organization of the Petroleum Exporting Countries (OPEC). How did this allow those countries to gain billions of dollars to modernize their economies?

HISTORY OF THE MIDDLE EAST

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	By lowering the demand, OPEC nations were able to set the price for oil
B	By creating a surplus, OPEC nations were able to set the prices for oil
C	By increasing the demand, OPEC nations were able to set the price of oil
D	By controlling the supplies, OPEC nations were able to set the price of oil

Explanation:

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: -These are the United States, Russia, Saudi Arabia, Canada and Iraq. Saudi Arabia and Iraq are members of a group called OPEC, while Russia is a member of a larger group called OPEC+.

Detailed explanation-3: -The non-OPEC countries which export crude oil are termed as OPEC plus countries. OPEC plus countries include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.

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