The Organization of Petroleum Exporting Countries (OPEC) is founded.

The **Organization of the Petroleum Exporting Countries (OPEC)** was founded on September 14, 1960, at a conference in Baghdad, Iraq. Its five founding members were Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. At the time, much of the international oil industry was dominated by large Western petroleum companies, which exercised considerable influence over production levels and prices. The oil-producing countries wanted greater control over their natural resources and a stronger voice in the world petroleum market. OPEC was therefore established to coordinate the petroleum policies of its members and protect their economic interests. Its headquarters was initially located in Geneva, Switzerland, before moving to Vienna, Austria, in 1965.

OPEC gradually expanded during the 1960s and 1970s as countries including Qatar, Indonesia, Libya, the United Arab Emirates, Algeria, and Nigeria joined the organization. Its influence increased dramatically during the **1973 oil crisis**, when Arab oil-producing countries imposed an oil embargo against the United States and several other nations that supported Israel during the Yom Kippur War. Although the embargo was carried out by Arab producers rather than OPEC as a whole, the crisis demonstrated the growing economic power of oil-exporting nations. World oil prices rose sharply, contributing to inflation, fuel shortages, and economic difficulties in many industrialized countries. The events of the 1970s transformed OPEC into one of the most influential organizations in the global economy.

During the 1980s and 1990s, OPEC faced new challenges as oil production increased outside the organization, particularly in areas such as the North Sea, Alaska, and Mexico. Falling demand and disagreements among OPEC members over production quotas contributed to a major collapse in oil prices in 1986. OPEC increasingly relied on production targets and quotas in an effort to balance global supply and demand and stabilize prices. The organization also had to respond to major political events affecting oil supplies, including the Iran-Iraq War, Iraq’s invasion of Kuwait in 1990, the Gulf War, and later conflicts in the Middle East. Despite periods of internal disagreement, Saudi Arabia’s enormous production capacity gave it an especially important role in OPEC’s efforts to manage the oil market.

In the 21st century, OPEC has continued to play a major role in world energy markets while adapting to new competitors and changing patterns of energy consumption. The rapid growth of U.S. shale oil production during the 2010s reduced OPEC’s ability to influence the market on its own. In response, OPEC began cooperating more closely with major non-member producers, especially Russia, creating the alliance commonly known as **OPEC+** in 2016. OPEC+ has coordinated production cuts and increases in response to events such as the 2020 collapse in oil demand during the COVID-19 pandemic and subsequent changes in global energy markets. Today, OPEC remains an important force in the petroleum industry, although it faces long-term challenges from renewable energy, electric vehicles, climate policies, geopolitical tensions, and efforts around the world to reduce dependence on fossil fuels.