The significance of the formation of OPEC in response to oil crises was its role in regulating oil production and prices among member countries. Established in 1960, OPEC aimed to coordinate and unify petroleum policies to stabilize prices, benefiting oil-producing nations. During the 1973 oil embargo, OPEC's influence significantly affected global economies, leading to economic challenges, inflation, and energy conservation efforts in consumer nations. This shift marked a new era in international economics, highlighting the geopolitical power of oil and prompting countries to consider energy independence.