The
Organization of Petroleum
Exporting Countries (OPEC) was founded in 1960 as an intergovernmental organization with five
oil producing and
exporting member states. The essay examines the states' reasons for forming the
organization and the common interests that directed the organizations policies. The political structure is also discussed, stressing the shifts in power from one member state to the next. Important policy changes through to the present have led to the strength of the organization as an oil cartel, because production levels and sales quotas are monitored closely and distributed equally among the member states.