Baghdad meeting, five oil nations and global power shift: How OPEC was born on this day in 1960
Over six decades ago, five of the top oil producing countries came together to form an alliance in a bid to enhance co-operation and secure fair prices for the petroleum producers. Thus came into existence the Organization of the Petroleum Exporting Countries (OPEC).
The Organization of the Petroleum Exporting Countries came into existence on September 14, 1960. (opec.org)The OPEC was founded by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela on September 14, 1960, after the countries held a five-day conference in Baghdad.
According to the official website of OPEC, the organisation's mission is to "coordinate and unify the petroleum policies of its member countries" in order to safeguard the interests of the producers, as well as, the consumers.
The OPEC nations also seek to ensure that the oil markets remain stable so that they can provide "efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry".
According to the organisation's website, OPEC saw a rise in its influence during the 1980s, as member nations took control of their domestic petroleum industries and assumed a greater role in world oil markets.
OPEC has emerged as a global power over the decades. The alliance's influence comes not just from its production capacity, but also from the concentration of reserves. Its members collectively hold a very large proportion of the world's proven crude-oil reserves, giving the group considerable long-term influence over the oil market.
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