Sixty-six years ago, in September 1960, five oil-producing nations—Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela—gathered in Baghdad and established the Organization of the Petroleum Exporting Countries (OPEC). Since then, OPEC has become one of the most influential players in the global energy market.
The historic meeting, held from September 10 to 14, 1960, at Al-Shaab Hall in Baghdad, brought together representatives of Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. It marked the beginning of a process that would gradually reshape the position of oil-producing countries vis-à-vis major international oil companies.
At the time, much of the oil industry in the founding countries was under the influence of international oil companies, while producing governments had limited control over the pricing, production, and marketing of their own crude. OPEC's initial objectives were to coordinate the petroleum policies of its members, safeguard the interests of producing countries, and contribute to stability in the global oil market. OPEC's Secretariat was initially based in Geneva, but it moved to Vienna in 1965, a city that remains the organization's permanent headquarters.
The 1970s: The Rise of an Oil Power
One of the most important turning points in OPEC's history came in the 1970s. The growing bargaining power of oil-producing countries, the gradual nationalization of the petroleum industry in several member states, and major geopolitical developments dramatically increased OPEC's influence.
The 1973 oil crisis and the Arab oil embargo against several Western countries triggered a sharp rise in oil prices and brought unprecedented global attention to the power of oil producers. During this period, OPEC evolved from a relatively young organization into a decisive force in the global economy.
However, the era of persistently high oil prices did not last. Rising non-OPEC production, weakening demand, and changing consumption patterns in industrialized countries placed significant pressure on the market during the 1980s. In 1986, oil prices suffered a dramatic collapse, while OPEC production also fell substantially compared with previous years. The crisis demonstrated that even an organization representing countries with enormous oil reserves could not fully control the forces shaping the global market.
The 1990s and the Beginning of the New Century: Managing Crises
The Gulf War in 1990, the Asian economic crisis in the late 1990s, and sharp fluctuations in oil demand once again placed OPEC at the center of global attention. Then, during the 2000s, rapidly rising oil demand—particularly in China and other Asian economies—created the conditions for another sustained increase in prices.
The emergence of the U.S. shale oil industry, however, changed the market equation. Beginning in 2014, growing supply from outside OPEC, combined with weaker demand, triggered a severe decline in oil prices. Between June 2014 and January 2016, the OPEC Reference Basket price fell by roughly 80 percent. This period represented one of the most serious tests in the organization's history.
2016: The Birth of OPEC+
OPEC's response to the price crisis was to expand cooperation with non-member producers. In December 2016, the "Declaration of Cooperation" was established between OPEC members and 10 non-OPEC oil-producing countries, including Russia, Azerbaijan, Kazakhstan, and Oman.
The framework, which subsequently became known as the OPEC+ alliance, represented one of the most significant structural developments in the global oil market in recent decades.
2020: The Unprecedented Market Shock
The COVID-19 pandemic in 2020 marked another decisive turning point. The sudden collapse in economic activity, travel, and transportation led to an unprecedented decline in oil demand.
On April 20, 2020, the futures contract for the benchmark West Texas Intermediate (WTI) crude fell into negative territory for the first time in history, reaching approximately minus $37.60 per barrel.
In response, OPEC and its OPEC+ partners implemented the largest coordinated production cut in the history of the oil industry. The measure was critical to preventing storage facilities from reaching capacity and helping restore balance to the market.
OPEC Today: Still a Major Force
As of 2026, OPEC has 11 members: Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Libya, Algeria, Nigeria, Gabon, the Republic of the Congo, and Equatorial Guinea. In recent years, the departures of countries such as the United Arab Emirates, Qatar, Ecuador, Indonesia, and Angola have demonstrated that the organization's membership structure is also evolving.
Although OPEC's share of global oil production has declined relative to previous decades, the organization's importance remains substantial. According to OPEC's annual statistics, its member countries held approximately 1.241 trillion barrels of proven crude oil reserves at the end of 2024.
In 2025, OPEC members exported an average of approximately 19.85 million barrels of crude oil per day, with the majority—around 14.79 million barrels per day—destined for Asian markets.
Today, OPEC is more than an organization focused solely on protecting the interests of oil producers. It remains a central forum for discussions about energy security, investment, market stability, and the future of the petroleum industry.
The cooperation between OPEC and its allies has demonstrated that, in a world with an increasingly diverse range of oil producers, the global petroleum market depends more than ever on coordination among major market participants.
At the age of 66, OPEC's legacy can be summarized in several key achievements: transferring part of the decision-making power in the oil industry to producing countries; playing a central role in major market crises; creating new mechanisms for cooperation with non-OPEC producers; and making sustained efforts to balance supply, demand, and price stability.
OPEC's future will continue to depend on its ability to adapt to geopolitical developments, the energy transition, the expansion of renewable energy, and the continuing importance of oil to the global economy.
If this is intended for publication, the next useful step would be a **fact-check and editorial polish of the 2026 membership, reserve, and export figures**, since those are the most time-sensitive claims.