Organization of Petroleum-Exporting Countries

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Body established in 1960 to coordinate price and supply policies of oil-producing states, protecting its members' interests by manipulating oil production and the price of crude oil. Its concerted action in raising prices in the 1970s triggered worldwide recession but also lessened demand so that its influence was reduced by the mid-1980s. However, continued reliance on oil re-strengthened its influence in the late 1990s. OPEC members are: Algeria, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. Ecuador, formerly a member, withdrew in 1993. OPEC's secretary general is Rilwanu Lukman of Nigeria.

OPEC also aimed to improve the position of developing countries by forcing Western states to open their markets to the resultant products.

The body's importance in the world market was reflected in its ability to implement oil price increases from $3 a barrel in 1973 to $30 a barrel in 1980. In the 1980s, OPEC's dominant position was undermined by reduced demand for oil in industrialized countries, increased non-OPEC oil supplies, and production of alternative energy. These factors contributed to the dramatic fall in world oil prices to $10 a barrel in July 1986 from $28 at the beginning of the year. Although its efforts to stabilize oil prices through mandatory reduced production have been resisted by various members, OPEC decided in November 1995 to retain the freeze on production instituted the previous year for a further six months. It held its first summit in 25 years in September 2000, with oil prices at $25 a barrel, and OPEC's influence rising. Venezuela's president Hugo Chavez encouraged unity to keep oil prices high.

The emblem reflects the Vatican's importance as the headquarters of the Roman Catholic Church. The colours of the flag are based on the gold and silver of the papal keys. Effective date: 8 June 1929. >>