OPEC was formed in 1960 in order to
coordinate and unify policies.
A more complete explanation is here:
http://www.investopedia.com/terms/o/opec.asp
OPEC, which stands for the Organization of the Petroleum Exporting Countries, was formed in 1960 with the primary goal of coordinating and unifying the petroleum policies of its member countries. The founding members of OPEC were Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
To understand why OPEC was formed, it's important to look at the context of the global oil market at that time. In the 1950s, many oil-producing countries in the Middle East and other regions were gaining independence, and they sought to assert more control over their oil resources. Additionally, they wanted to secure a fair price for their oil and negotiate on equal terms with multinational oil companies.
The formation of OPEC provided a platform for member countries to collectively negotiate with oil companies, establish production quotas, and stabilize prices. By working together, these countries aimed to protect their economic interests by exerting greater control over the oil industry.
In summary, OPEC was formed in 1960 to unify the petroleum policies of its member countries and allow them to collectively negotiate with oil companies, establish production quotas, and stabilize prices.