OPEC

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  • US limits crude oil and refined product imports.

    the U.S. government established the Mandatory Oil Import Quota program which limited the crude oil and refined products into the US. The United Stated gave preferential treatment to oil imports from Canada and Mexico which lead to oil prices being reduced in the Middle East.

  • Creation of OPEC

    Four oil producing developing countries created OPEC in Baghdad. These countries were Iran, Iraq, Kuwait, and Saudi Arabia. These nations created the Organization of the Petroleum Exporting Countries in order to obtain higher prices for crude oil.

  • Arab Oil Embargo

    This was the first occasion that triggered the oil prices rising steeply in a volatile market. It was the start of incredible change and turmoil. Also in this year eight other nations joined OPEC. Algeria, Ecuador, Gabon, Indonesia, Libya, Nigeria, Qatar, and the United Arab Emirates.

  • The prices crash

    Crude oil prices began to weaken in the beginning of the dacade and finally crashes in 1986 responding to a big oil glut and consumer shift away from this hydrocarbon. The smaller oil market fell heavily and its total petroleum revenue dropped below a third of earlier peaks, causing severe economic hardship for many Member Countries.