Five Nations Unite: OPEC Born from Frustration with Western Oil Control

The birth of OPEC in 1960 marked a significant shift in global energy politics. In September that year, five oil-producing nations - Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela - met in Baghdad to create an organization that would change the way oil was produced, priced, and profited.

The founding members were frustrated with the Western oil companies' control over oil production, pricing, and profits. Before 1960, these major companies, known as the 'Seven Sisters', controlled almost every aspect of the oil industry, leaving oil-producing countries with little say in how their resources were used or priced.

One of the key events that led to the creation of OPEC was the unilateral price cuts made by Western oil companies in 1959 and again in August 1960. These cuts significantly reduced producer revenues, prompting the need for coordinated action among producing countries.