OPEC's Founding in 1960 Marked a Pivotal Shift Towards Resource Sovereignty for Oil-Producing Nations
The Organization of the Petroleum Exporting Countries (OPEC) was established on September 14, 1960, in Baghdad by five oil-producing nations: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. This formation was a direct response to the frustration felt by these countries over the pricing power wielded by Western oil companies, often referred to as the 'Seven Sisters.' Before OPEC's inception, these major Western companies controlled oil production, pricing, and profits, leaving producing nations with little say beyond receiving royalties. The catalyst for OPEC's creation was the unilateral decision by Western companies to cut oil prices in February 1959 and again in August 1960, which significantly reduced producer revenues. OPEC's core objective was to coordinate petroleum policies to ensure fair and stable prices for producers, efficient supply for consumers, and a fair return on capital for investors, thereby asserting the concept of resource sovereignty.
