What does OPEC stand for, and what is its main purpose?

OPEC stands for the Organization of the Petroleum Exporting Countries, and its main purpose is to coordinate and unify petroleum policies among member countries. Founded in 1960, OPEC's primary aim is to ensure the stabilization of oil markets in order to secure a regular supply of petroleum to consumers, a steady income for producers, and a fair return on capital for those investing in the petroleum industry.

This coordination helps to manage oil production levels and influence global oil prices, ensuring that member countries can benefit economically while maintaining a stable energy market. The focus on unifying policies rather than simply setting fixed prices allows OPEC to adapt to market conditions, thereby supporting both producers and consumers in the global oil industry.

In contrast, the other choices fall short in terms of capturing OPEC’s actual objectives and scope. For example, the first option mentions standardizing oil prices, which does not reflect the organization's broader goal of policy coordination. The third option inaccurately describes OPEC's name and purpose by focusing on global energy markets and alternative energy sources, which are not central to OPEC's mission. Lastly, the fourth option incorrectly summarizes OPEC's focus by mischaracterizing its name and suggesting an emphasis on promoting alternative energy instead of oil.