What does OPEC stand for? Those four letters are short for the Organization of the Petroleum Exporting Countries, an intergovernmental group of nations whose economies depend heavily on selling crude oil. Its members meet to coordinate oil policy, most visibly by agreeing on how much oil each country will pump.
You hear the name most often in business and world news, usually when gas prices or energy markets are in the headlines. A report that "OPEC agreed to cut output" means member governments decided together to produce less oil for a period, which can push world oil prices up.
Quick facts
Stands for
Organization of the Petroleum Exporting CountriesType
Acronym, said "OH-pek"Founded
1960, at a meeting in BaghdadHeadquarters
Vienna, AustriaFounding members
Iran, Iraq, Kuwait, Saudi Arabia and VenezuelaRelated term
OPEC+, a wider group that includes other oil producers
What does OPEC stand for, and what is it?
Each part of the name describes the group:
- Organization: a formal body with a charter, a secretariat and regular meetings.
- Petroleum: crude oil, the product at the center of its work.
- Exporting: members sell oil to other countries rather than mainly using it at home.
- Countries: members are national governments, not companies.
The group was set up in 1960 by five founding countries. Membership has changed over the decades as some nations joined and others left or paused their membership, so the current count is best checked on the day you need it. Its headquarters has been in Vienna since the 1960s, which ties it to the Austria page on this site.
What OPEC does day to day
The core job is coordination. Member oil ministers hold regular conferences and set production targets, often called quotas, for each country. The stated aims are steady oil markets, a fair return for producers and a reliable supply for buyers.
The group also publishes reports on oil demand, supply and market trends, and it gathers data from members. It does not sell oil itself. Each member country sells its own oil through its own national companies.
A news line: "OPEC members agreed to keep output steady through the next quarter." This means the countries did not change their production targets, and traders will watch to see whether each country sticks to its share.
OPEC vs OPEC+
OPEC+ is a broader arrangement. It joins the OPEC members with a group of other oil exporting nations that are not formal members but agree to coordinate output with them. Because the wider group controls a larger share of world supply, its decisions often draw more attention than those of OPEC alone.
When a headline says OPEC+, it means this larger alliance. When it says OPEC alone, it usually means the member organization itself.
Why OPEC shows up in the news
Oil is priced on world markets, so a change in supply from a large group of producers can move prices for everyone. That chain reaches drivers, airlines, farmers and factories. News stories often link OPEC decisions to fuel costs and to inflation measures like the CPI.
Views on the group differ. Supporters of producer coordination say it smooths out wild swings. Critics in importing countries say it can raise costs for consumers. Economists also note that many other forces affect prices, including demand, production in non member countries and world events.
How to say and write OPEC
OPEC is said as a word, "OH-pek," which makes it a true acronym. Use all capitals and skip periods. With that "oh" at the front, pick an over a: "an OPEC meeting," "an OPEC member."
In news writing the name usually needs no spelling out, because readers know it, but a school report should give the full name on first use. To see how acronyms said as words differ from letter by letter ones, read acronym vs abbreviation.
Questions people ask
Is the United States a member of OPEC?
No. The United States is a large oil producer, but it is not a member of OPEC or part of the OPEC+ alliance.
Where is OPEC based?
Its headquarters is in Vienna, Austria. The group was founded at a conference in Baghdad, Iraq, but moved its base to Vienna in the 1960s.
Does OPEC set the price of gas?
Not directly. It sets production targets for its members, and changes in supply can affect world oil prices. Pump prices also depend on refining, taxes, shipping and local demand.
How do you pronounce OPEC?
Say it as one word, "OH-pek." Nobody reads it as O P E C.
What is the difference between OPEC and OPEC+?
OPEC is the formal organization of member countries. OPEC+ adds several other oil exporting nations that coordinate their output with OPEC without joining it.