Organization of the Petroleum Exporting Countries

OPEC Back Story

OPEC is an cartel that aims to manage the supply of oil in an effort to set the price of oil on the world market, in order to avoid fluctuations that might affect the economics of both producing and purchasing countries. OPEC was founded by Baghdad and Iraq in 1960.

in September of 1960 four Persian Gulf nations (Iran, Iraq, Kuwait, and Saudi Arabia) and Venezuela formed OPEC in order to obtain higher prices from crude oil. By 1973 eight other nations had joined OPEC. These nations are Algeria, Ecuador, Gabon, Indonesia, Libya, Nigeria, Qatar, and the United Arab Emirates.