ranjan

The factors leading into formation of OPEC are - 1)  Oil companies - Monopoly of seven major oil companies - five US companies , one each      English company and English - Dutch company. 2) Venezuela oil related activities- Due to movement by increasing oil taxes. In fact, this was     the first step towards creating OPEC. 3) Movement for Nationalisation of oil industry by Mid - East countries. 4) Reduction in oil prices- Around 1959, US companies unilaterally reduced price by 18 cents     to 25 cents per Barrel. 5) Arab countries insistence- for creation of organisation for protecting their interest.        FORMATION OF OPEC- The Organisation of Petroleum Exporting Countries (OPEC) is a permanent inter governmental organisation created at Baghdad conference on Sept. 10 - 14, 1960 by Iran, Iraq, Kuwait, Saudi Arabia & Venezuela. It had its headquarters in Geneva, Switzerland in first five years of its existence. It has a total 15 member countries, all major oil export