Organization of Petroleum Exporting Countries

American  

noun

1. OPEC.

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Organization of Petroleum Exporting Countries Cultural  

1. An organization of about a dozen nations that sell oil to other nations. The purpose of OPEC, a cartel, is to control the production of oil and to establish favorable oil prices for the member nations. Most OPEC countries, such as Libya and Saudi Arabia, are in the Middle East or northern Africa, but Indonesia and Venezuela are members as well.

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OPEC was formed in the early 1960s but had little impact before 1973. Then, to punish the United States and several Western nations for supporting Israel in a war against Egypt (see also Egypt) and Syria (see Arab-Israeli conflict), the Arab members of OPEC placed an embargo on the sale of oil to the United States and some of its allies. The result was a severe gasoline shortage and a recession in Western nations, especially in Europe, Canada, and the United States. Since then the price of oil has fluctuated, partly because OPEC members have had difficulty agreeing on and policing a common pricing policy.

Example Sentences

By leaving the Organization of Petroleum Exporting Countries, the U.A.E. can now push to maximize its output, presenting a new bearish oil market factor.

From Barron's • May 4, 2026

However, Soener purposely excluded from the sample members of the Organization of Petroleum Exporting Countries because these nations rely primarily on petroleum-based wealth that gives them more favorable investment dynamics.

From Science Daily • Mar. 20, 2024

Some investors took the warning as a signal that OPEC+, the Organization of Petroleum Exporting Countries and allies including Russia, could consider further output cuts at a meeting on June 4.

From Reuters • May 28, 2023

Countries belonging to the Organization of Petroleum Exporting Countries cut exports to the U.S. as retribution for supporting Israel in the 1973 Arab-Israeli War, causing prices to rise steeply.

From Scientific American • Mar. 1, 2023

The forum, which included speakers from the Organization of Petroleum Exporting Countries, the International Energy Agency and the International Energy Forum, presented varying forecasts for oil demand and discussed energy security and market stability.

From Seattle Times • Feb. 16, 2022