Stumped by ‘Intl. price-setting group’? Unravel the crossword mystery now!

Stumped by ‘Intl. price-setting group’? Unravel the crossword mystery now! - OPEC
Intl. price-setting group

Certainly! The answer to the crossword clue “Intl. price-setting group” is OPEC. OPEC stands for the Organization of the Petroleum Exporting Countries. It is an intergovernmental organization that was founded in 1960 by five major oil-producing countries: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. OPEC currently consists of 13 member countries, including those original five, as well as Algeria, Angola, Congo, Equatorial Guinea, Gabon, Libya, Nigeria, and United Arab Emirates.

Now, the main objective of OPEC is to coordinate and unify the petroleum policies of its member countries to ensure stable oil markets and a fair return on investment for the oil-producing nations. They primarily focus on setting oil production quotas to manage supply and stabilize oil prices in the international market. OPEC meetings are held regularly to discuss and agree upon these production levels.

OPEC gained significant influence in global oil markets due to its member countries’ substantial oil reserves and production capacity. In fact, OPEC member nations collectively possess about 80% of the world’s known oil reserves. This gives them significant leverage in determining the price and supply of oil.

When OPEC decides to raise or lower oil production, it has a direct impact on oil prices worldwide. If the member countries collectively decide to decrease oil production, this reduces the global supply and can lead to higher oil prices. On the other hand, if OPEC increases production levels, it can cause a decrease in oil prices.

It is essential to note that OPEC’s influence on oil prices has varied over the years due to several factors. These include geopolitical tensions, fluctuations in demand, the emergence of non-OPEC oil producers, and other market forces. Nevertheless, OPEC still holds a crucial role in the petroleum industry and plays a significant part in global oil markets.

In summary, OPEC is an international organization made up of oil-producing countries that coordinate their petroleum policies to stabilize oil markets and set pricing. Their actions, including the regulation of oil production quotas, play a vital role in determining oil prices worldwide.