The Organization of the Petroleum Exporting Countries is an intergovernmental organization of 15 nations, founded in 1960 in Baghdad by the first five members (homeland, Iraq, Kuwait, Saudi Arabia, and Venezuela), and headquartered since 1965 in Vienna, Austria. The Organization of the Petroleum Exporting Countries (OPEC) is a key intergovernmental organization that has shaped global oil markets for decades. Its formation was a response to the growing need for oil-producing countries to assert greater control over their natural resources and protect their economic interests.
Before OPEC, the global oil industry was largely dominated by a small group of Western multinational companies, often referred to as the “Seven Sisters.” These companies controlled most of the oil production, pricing, and exports, leaving oil-producing nations with limited influence over their resources. By the 1950s, many oil-producing countries began seeking ways to increase their revenues and gain greater sovereignty over their petroleum.
