The main reason that oil-producing states formed

the Organization of the Petroleum Exporting

Countries (OPEC) was to

(1) allow foreign ownership in oil fields

(2) influence the price of oil and set production

levels

(3) improve diplomatic relations with the West

(4) lift economic sanctions and establish free

trade

The correct answer is 2. The main reason that oil-producing states formed the Organization of the Petroleum Exporting Countries (OPEC) was to influence the price of oil and set production levels.

Explanation:

The Organization of Petroleum Exporting Countries (OPEC) is an international organization founded in Baghdad, Iraq, in 1960. It is currently composed of 14 countries, of which 5 are founding members (Saudi Arabia, Kuwait, Iran, Iraq and Venezuela).

The OPEC statutes establish that its objective is to coordinate and unify oil policies among the member countries, in order to guarantee fair and stable prices for oil producers, the efficient, economic and regular supply of oil to consumer countries and a fair return on investors' capital.

The member countries achieved a significant increase in the price of oil, especially in the years 1973, 1974 and 1979, and a greater participation and control over the exploitation carried out in their territories.