Organization of Petroleum-Exporting Countries
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flag this descriptionThe Organization of the Petroleum Exporting Countries (OPEC; pronounced /oʊ.pɛk/, OH-pek) is a cartel of twelve countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings among the oil ministers of its Member Countries. Indonesia withdrew its membership in OPEC in 2008 after it became a net importer of oil, but stated it would likely return if it became a net exporter in the world again.
According to its statutes, one of the principal goals is the determination of the best means for safeguarding the cartel's interests, individually and collectively. It also pursues ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations; giving due regard at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient and regular supply of petroleum to consuming nations, and a fair return on their capital to those investing in the petroleum industry.
Full description of OPEC at Freebase
But the gains aren’t going to last. Demand from refineries is still very low and prices are way too high for demand to recover strongly.
Oil is being helped by a weaker dollar and a somewhat friendlier equity market
Chinese officials have made it clear that the government will continue to foster strong economic growth as long as inflation remains moderate, thus raising the possibility of potential upside sensitivity for the country's oil demand outlook
The uneven distribution of oil demand represents a risk factor for the oil price, since, in the long run, emerging economies will be unable to maintain the current high demand dynamics
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