A large proportion of citizens use their own vehicles for work, leisure, or family life, and they regularly need to refuel at service stations. In this context, one of their main concerns is fuel prices. On many occasions, when prices rise, the increase is attributed to decisions made by OPEC (the Organization of the Petroleum Exporting Countries). But what exactly is OPEC?

OPEC (Organization of the Petroleum Exporting Countries – OPEC) is a permanent intergovernmental organization of 13 developing countries with the capacity to export oil. The Organization coordinates and unifies the policies of its member countries with regard to this raw material. These 13 countries are Angola, Saudi Arabia, Algeria, Congo, the United Arab Emirates, Gabon, Equatorial Guinea, Iraq, Iran, Kuwait, Libya, Nigeria, and Venezuela. Approximately 40% of global oil production and 80% of the world’s proven oil reserves are located in OPEC member countries.

AN ORGANIZATION THAT COORDINATES OIL-PRODUCING COUNTRIES

According to its Statutes, OPEC’s mission is to coordinate and unify the petroleum policies of its member countries. It also seeks to ensure the stability of oil markets in order to guarantee an efficient, economical, and regular supply of oil to consumers, a steady income for producers, and a fair return on capital for those investing in the oil industry.

“OPEC’s mission is to coordinate and unify the petroleum policies of its member countries.”

The Organization was founded in September 1960 during a conference held in Baghdad. The five founding members were Saudi Arabia, Iraq, Iran, Kuwait, and Venezuela. Subsequently, other countries have joined as full members, following acceptance by the Organization. Any country with substantial net exports of crude oil and with interests similar to those of the member countries may become an OPEC member, provided that at least 75% of the total membership approves its admission.

Over the more than 60 years of the Organization’s existence, various countries that met the requirements have been admitted to OPEC, while others have suspended their participation after different periods of time. The current balance stands at 13 member countries. Throughout its more than six decades, the Organization has operated in a context marked by political and economic changes, geopolitical crises, and the COVID-19 pandemic in 2020. All of this has generated significant volatility in energy supply, demand, and prices, while at the same time the world is driving an energy transition toward more sustainable sources. Since 1965, the Organization’s Secretariat has been headquartered in Vienna.

OPEC ORGANIZATION AND FUND PUBLICATIONS

Among its duties, the OPEC Secretariat prepares various publications on the activities it carries out, as well as on data and information related to its member countries and the oil industry in general. The most notable publications include:

• Monthly Oil Market Report.
• OPEC Bulletin. It contains in-depth articles on the activities and events of the Secretariat, as well as news from member countries.
• World Oil Outlook (WOO) Report. It provides medium- and long-term outlooks for the global oil market.
• Annual Statistical Bulletin (ASB). It compiles quantitative information on oil and gas reserves worldwide. It also includes data on refining and consumption, exports and imports, pipelines and oil tankers, and hydrocarbon production.

In addition to its work focused on the oil business, the Organization created the OPEC Fund for International Development in 1976. The objectives of this fund are to address the difficult situation of the world’s poorest nations and to promote development, strengthen communities, and empower people. The goal is to make sustainable development a reality for all. The Fund’s work is people-centered and focuses on projects that meet basic needs such as food, energy, clean water and sanitation, healthcare, and education. It seeks to foster self-reliance and inspire hope for the future. Twelve member countries of the Organization participate in the Fund, along with 125 other states as partners.

OPEC+ and Its Impact on Users

As an extension of OPEC, the so-called OPEC+ was created in 2016. It is an alliance that brings together the thirteen OPEC member countries and ten other oil-producing countries led by Russia. In short, these are the 23 countries that extract the largest volumes of oil from their fields. Both OPEC and OPEC+ meet regularly to analyze the situation of the oil market and to make decisions regarding production levels and quotas, which ultimately have an impact on the prices of petroleum products. In its most recent meetings, OPEC+ has agreed on production cuts through the end of 2024, which are responsible for the current rise in fuel prices in countries such as Spain.

“Haxx seeks to offer stability and competitive prices in petroleum products to its clients, so they can focus on developing their businesses.”

While OPEC operates at the upstream stage of the oil industry value chain, companies such as Haxx are positioned in the downstream segment. The Group is a 100% Spanish-owned corporate holding whose mission is the acquisition, storage, marketing, and distribution of petroleum products. To carry out this mission in the volatile oil market, the holding also focuses on securing diversified supply lines that make it possible to offer stability and competitive prices to its clients. The goal is to provide those clients with energy stability and certainty, allowing them to concentrate on their own products and services.