OPEC
Structure, Function, and Market Power
The Organization of the Petroleum Exporting Countries (OPEC), founded in Baghdad in 1960, is an intergovernmental organisation of 12 oil-exporting nations. Its core function is to coordinate petroleum production policies among members to stabilise oil markets and secure fair returns to producers. OPEC members collectively hold approximately 79.4% of global proven crude oil reserves. OPEC+ (since 2016) adds 10 more producers including Russia, giving the bloc influence over roughly 59% of global production. However, OPEC's tools — production quotas, spare capacity deployment — are effective only when the supply chain from wellhead to buyer is physically functional. Physical blockades of export routes operate outside OPEC's policy toolkit.
- Saudi Arabia is OPEC's largest producer and holds the bloc's greatest spare production capacity
- Iraq is OPEC's second-largest producer; its near-collapse during the 2026 Hormuz crisis had a disproportionate price effect
- Iran is an OPEC member and was simultaneously a direct belligerent in the conflict causing the supply shock
- The OPEC Reference Basket of Crudes is a weighted average of key member grades and serves as a benchmark for member revenue calculations
● Tracked since March 09, 2026 · last seen May 02, 2026 · updates as the daily brief publishes