The organisation was formed in order to achieve the following functions and objectives:
(i) Control of Price of Crude Oil in the World Market:
OPEC determines the minimum prices using different means of stabilising and controlling the sales in international oil market for member countries.
(ii) To Regulate the Production Level for Member Countries:
OPEC determines oil production levels for member countries in order to reduce over production – through specification or quota.
(iii) It Helps Member Countries to be Involved Directly in the Exploitation of Their Natural Resources:
This is done by helping member countries to stimulate the development of an indigenous technological base and research institutions for the production of oil.
(iv) To Protect the Interest of Their Member Countries:
This is achieved through establishing the legal institutional machinery with which the operation of the oil companies in their respective countries were brought under control.
(v) It Controls Government Influence Over Oil Production in Member Countries:
OPEC controls government influence over oil production following the resolution passed asking each member country to reduce control in oil companies operating in their territories so as to have a fair role of crude oil exploration, production and sales.