In September 1960, representatives from five oil-producing nations convened in Baghdad, Iraq, to address the challenges they faced in the rapidly changing oil market. The founding members—Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela—sought to establish the Organization of Petroleum Exporting Countries (OPEC) to provide a unified policy for oil production and pricing. This move was motivated by concerns over fluctuations in oil prices that were adversely impacting their economies. The meeting resulted in the adoption of a charter for the organization, which emphasized cooperation among member states to promote their common interests and stabilize the oil market.

The creation of OPEC was significant as it represented a collective effort by oil-rich nations, which had historically been dominated by Western oil companies. The organization aimed to give these countries more control over their resources and to establish a platform for dialogue on oil production and pricing. The initial gathering in Baghdad set the stage for OPEC’s future influence in global energy politics, as it would convene regularly to determine production quotas and manage pricing strategies.

OPEC's establishment did not go unnoticed on the global stage. The organization's formation was a pivotal moment as it introduced a different dynamic to the oil market, where previously, supply and prices were mainly dictated by private companies and their interests. As OPEC evolved, it grew to include additional member states and became a significant power broker in the geopolitics of energy, influencing both oil prices and international relations into the 21st century.