Celebrating 64 Years of OPEC

Last week, OPEC celebrated its 64th anniversary, marking its founding between 10th and 14th September 1960 in Baghdad. Iraq takes great pride in being a key founding nation of OPEC and continues to play a vital role in its ongoing success.

In a statement, OPEC remarked: “On the banks of the Tigris and Euphrates rivers in Mesopotamia, the cradle of historical civilisations, OPEC was born on 14 September 1960, in the People’s Hall in Baghdad without any noise from the international media.” This underscores Iraq’s significant role as a founding member, a nation which shares borders with three other key OPEC members—Iran, Kuwait, and Saudi Arabia. The decision to establish OPEC in Baghdad was no coincidence but a reflection of Iraq’s geopolitical and economic importance.

OPEC was created to ensure fairness in the oil market while supporting economies reliant on oil production.

Today, OPEC continues its mission to stabilise global energy markets, promote sustainable energy development, and address environmental concerns. Iraq, as a central pillar within OPEC, plays a crucial role in this mission, with its vast oil reserves ranking among the top globally. Iraq’s leadership and contributions have consistently demonstrated the country’s commitment to the organisation’s long-term vision.

On 22 August, the Ministry of Oil reaffirmed Iraq’s dedication to OPEC+ targets, aimed at stabilising the global market, by implementing voluntary oil production cuts. Iraq has consistently taken steps to support both oil-producing and oil-consuming nations, underscoring its ongoing commitment to global market stability.

Despite its contributions, Iraq continues to face challenges. The country has been scrutinised for past overproduction, although it has since taken voluntary “compensation” cuts to balance overall production levels. Nevertheless, Iraq’s economy remains heavily dependent on oil revenues, particularly to cover public sector wages, which makes the country vulnerable to market fluctuations. However, Iraq has taken bold steps towards economic reform and diversification, including investment in renewable energy projects, reconstruction efforts, and strengthening ties with global investors to attract foreign direct investment. These efforts are expected to gradually reduce Iraq’s reliance on oil, as it continues to seek alternative, sustainable sources of revenue in the long term.

Source: Ministry of Oil, OPEC