OPEC History
Before OPEC was formed, the international oil market was dominated by the “Seven Sisters” multinational companies. OPEC was constituted when Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela attended a four day Baghdad conference between September 10 - 14, 1960. Wanting to prevent its members from being taken over by more industrialized countries (like the U.S.A), OPEC member countries banded together to control oil production, and the price of oil. Later on nine more countries joined, but two (Gabon and Indonesia) dropped out. The formation eventually stopped competition (between oil producing countries), and essentially created a corporate monopoly/an oil cartel. OPEC still plays a principle role in oil prices today.
 A representative of Iran giving a speech in the1960 Baghdad Conference |
 Representatives of founding countries discussing oil prices and production. |
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