The Organization of the Petroleum Exporting Countries (OPEC) was founded in 1960 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela to better coordinate crude oil policies and production levels among the member countries to help stabilize oil prices. Over the years, OPEC has expanded to include seven additional countries: Algeria, Congo, Equatorial Guinea, Gabon, Libya, Nigeria, and the United Arab Emirates.
OPEC Plus, formed in 2016, includes OPEC members and 10 non-OPEC oil-producing countries, most notably Russia. This new coalition aims to enhance cooperation and better control oil production levels to help stabilize the global oil market and prices, especially during periods of high demand and high supply.
OPEC and OPEC Plus are a significant global crude oil alliance, effectively controlling 40-45% of the global crude oil market. Their policy decisions can influence global oil prices and significantly impact economies worldwide, particularly those heavily dependent on oil imports and exports. By coordinating production levels, OPEC and OPEC Plus aim to better manage oil supplies, maintain price stability, and ensure steady consistent revenue for their member countries.