In 1960, the oil-producing nations of Venezuela, Saudi Arabia, Kuwait, Iran and Iraq formed the Organization of the Petroleum Exporting Countries (OPEC) to ascertain the global oil markets' stability while ensuring fair prices for consumers and producers. Now comprising 13 member countries, OPEC plays an immense role in deciding oil prices. Several decades after OPEC's foundation, the European Union has expressed its plans to traverse a similar route in natural gas and hydrogen.
In a meeting in Brussels, European leaders proposed establishing a "consortium of buyers" to increase the bargaining power of European energy consumers. This proposition was a response to the soaring energy prices brought by the economic repercussions of the ongoing Russia-Ukraine war, supply chain constrictions and the drawn-out effects of the Covid-19 lockdowns.
