Final answer:
OPEC was formed to regulate the global oil market and fix oil prices, shifting the power balance to make importing nations dependent on oil-exporting countries. It aimed to benefit economically from higher oil prices and has remained functional by balancing member interests.
Step-by-step explanation:
The Organization of Petroleum Exporting Countries (OPEC) was formed to regulate the global oil market and ensure stability in oil prices. The main answer to why OPEC was formed is c. to fix oil prices. By controlling the production and supply of oil, OPEC sought to establish a balance that would benefit its member countries economically.Initially, OPEC struggled to control oil production due to the dependence of its member nations on oil exports. However, OPEC eventually realized that to increase the price of oil and their revenues, they needed to make importing nations dependent on them. Hence, they worked on reversing the power structure and collectively restricted oil production, which led to an increase in oil prices, especially during the 1970s energy crisis when they imposed oil embargoes on the West.In conclusion, OPEC was established not only for economic reasons but also as a political tool. It has remained functional over decades, despite predictions of its failure, by balancing the individual and collective interests of its member countries.