What is the significance of the Organization of Petroleum Exporting Countries (OPEC)?
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The major significance of OPEC is that it can at least try to control the supply of petroleum to the world. It can therefore affect oil prices which in turn affect the economies of just about every country in the world. In addition, the OPEC states have, in the past, used their control of oil supplies to try to make political points. For example, they cut off oil supplies to the West in the early 1970s in response to growing tensions between Arab countries and Israel, which was backed by the West.
So, the major significance of this organization is that it can try to affect the supply of oil in the world, thus affecting the global economy.
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