OPEC: Unification of the world’s petroleum producers ///

In the 1960s, Arab nations, which relied heavily on oil revenue, were being frustrated by oil price cuts made by Western oil companies. Another problem was the import caps imposed by the U.S. government, which also depressed prices. In August 1960, Western oil majors slashed prices once again, without consulting the exporting countries. In September, representatives from Saudi Arabia, Venezuela, Kuwait and Iran met in Baghdad with Iraqi officials. These five countries accounted for 80% of the world's crude exports and, on Sept. 14, they formed the Organization of Petroleum Exporting Countries (OPEC). The organization was formed to defend oil prices; however, in its initial years, OPEC had little influence, and was virtually ignored by the U.S. government.

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