Also known as The Organization of the Petroleum Exporting Countries, OPEC is an organization formed in 1960 that comprises members from the Middle East, Africa and South America. The primary objective of the organization is coordinating petroleum policies among member countries. By creating common ground on policies, OPEC hopes to ensure fair petroleum prices for producers, a regular supply for consuming countries, and a fair return on investment for those investing in petroleum. By coordinating policies OPEC has greater influence over energy markets, sometimes to the detriment of non-member countries. Why Was OPEC Formed? The inspiration behind OPEC was for five petroleum-rich developing nations – Iran, Iraq, Kuwait, Saudi Arabia and Venezuela – to regain control over the petroleum market during the 1960s. At the time, the market was dominated by a group of multinational, Anglo-American companies known as the “Seven Sisters”. Some of these companies include petroleum giants like Chevron, Shell, and BP. The founding member countries mentioned above created OPEC at the Baghdad Conference in 1960. Over the years, the number of participating countries has increased while some countries have terminated their memberships.