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Crude Oil (“Oil”) is well known for its importance in promoting the growth of an economy. The world consumes about 76 million barrels of oil per day, and the Organization of the Petroleum Exporting Countries (“OPEC”) controls approximately 60% of the world's oil reserves, with its exports accounting for 55% of all oil traded globally. It is to be noted that OPEC, which also accounts for 40% of annual Oil output, acts as a cartel to control Oil prices with the dual aim of price stability and maximum income for OPEC members.

OPEC currently consists of 13 members namely Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela (collectively referred to as “Members”). Venezuela was the first nation to approach Iran, Iraq, Kuwait, and Saudi Arabia in 1949 to discuss the formation of OPEC.OPEC was established in Baghdad Conference (held from September 10 – 14, 1960) in response to a 1960 law enacted by US President Dwight D. Eisenhower that imposed quotas on Venezuelan Oil imports in favor of Canadian and Mexican Oil industries[i]