Why did oil-rich countries form OPEC?
Why did oil-rich countries form OPEC?
user
OPEC was formed in 1960 in order to coordinate the prices of oil between countries that produce oil, and countries that consume oil. This is important because although oil-producing countries have more oil than they need, they are not particularly good at predicting how much will be consumed in the future. In order to mitigate the risk of not having enough oil, it is best to form an organization that is responsible for maintaining the price of oil and thereby insures the oil-producing countries against high prices, which would be bad for the economy.
assistant
Who were the founding member nations?
user
The founding nations were Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
assistant
Did Venezuela stay in after their revolution?
user
Yes, Venezuela did not leave OPEC after their revolution. They chose to remain a member, because they benefit from the organization.
assistant
Who are the current member nations in 2021?
user