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OPEC and its implication in the south

In 1960, an association was formed that would change the face of international oil acquisition forever. In order to combat the actions taken by the multi-national oil corporations to cut the prices of crude oil, five of the leading oil-exporting countries formed the Organization of Petroleum Exporting Countries (OPEC). These five countries- Saudi Arabia, Iran, Iraq, Kuwait, and Venezuela- were responsible for nearly 80% of all world oil exports at the time. From this point forward, OPEC would become the primary policy-making body for the price regulation of petroleum exports. Fuad Rouhani, the first Secretary-General of OPEC, established that the objectives of this organizations were:1) Endeavoring by all possible means to restore the price of crude oil to the level existing before the reductions.2) Ensuring that the oil companies maintain their prices at a stable level, avoiding any unnecessary fluctuations.3) Demanding that the companies should consult the countries concerned each time they consider that the position of the market calls for a modification of prices; in such an event, they would have to furnish a full explanation to justify their point of view.4) Elaborating a formula to ensure the stability of prices, and for this purpose resorting, if necessary, to a regime of control of production.5) Conducting the Organizations studies and activities in conformity with the following objectives: guaranteeing a stable revenue to the producing countries, an effective, economic and regular supply of petroleum to consumers, and an equitable remuneration to investors.6) Organizing a system of regular consultation among the members with a view to co-ordinating and unifying their petroleum policies and determining the best means of safeguarding their common interests, both individually and collectively. (AL_Sowayegh, 34)OPEC would consist of a Board of Governors, with one representative from each of the member countries. Also, the ...

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