The Founding Of OPEC
- Date
- 1960
- Category
- Economy & trade
- Region
- Middle East (Iraq)
- Era
- Contemporary
- Significance
On 14 September 1960 five oil-exporting states created the Organization of the Petroleum Exporting Countries in Baghdad, beginning a decades-long shift of power over global energy away from Western multinationals.
Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela formed the cartel after major oil companies unilaterally slashed the posted prices of Middle Eastern and Venezuelan crude in 1959, cutting the revenues on which producer governments depended. Championed by Saudi official Abdullah Tariki and Venezuela's Juan Pablo Pérez Alfonzo, OPEC aimed to coordinate production and pricing so that sovereign states, not the "Seven Sisters" oil firms, would set the terms of the world's most strategic commodity. Initially modest in influence, the organisation grew as more producers joined and laid the institutional groundwork for the transformative oil shocks of the 1970s, when embargoes and price rises would reorder the global economy. OPEC's creation marked a foundational moment in resource nationalism and in the economic self-assertion of the developing world, giving oil-rich states leverage that reshaped diplomacy, industrial policy, and the balance of wealth for generations.
One piece of history in your inbox, weekly
New empires, events and features as they land — one good email a week. No spam, unsubscribe anytime.
Empires active in 1960
- Soviet Union1922 CE – 1991 CE
- French Colonial Empire (Second)1830 CE – 1962 CE
- British Empire1583 CE – 1997 CE
- Spanish Empire1492 CE – 1976 CE
- Portuguese Empire1415 CE – 1999 CE
- Solomonic dynasty1270 CE – 1974 CE
Related economy & trade events
- China's Reform and Opening-Up Begins Under Deng XiaopingDecember 18, 1978
- The global financial crisis and the collapse of Lehman Brothers15 September 2008
- Treaty of Rome establishes the European Economic Community25 March 1957 (in force 1 January 1958)
- Containerisation begins: SS Ideal X first container voyage26 April 1956
- Aramco's 50-50 Oil Agreement Transforms the Gulf1950
- Nixon shock ends gold convertibility and ushers in 1970s stagflation15 August 1971
Further reading
The wider story
The Silk Roads: A New History of the World
Best-selling world history told through the trade routes that moved goods, faiths and ideas.
Get it on Amazon →As an Amazon Associate, Human Saga earns from qualifying purchases.