OPEC

By: Ester & Yeni

summary

The Organization of petroleum Exporting Countries an economic associations of oil producing nations that is able to set oil prices. After they raised the oil prices during the 1973, a war broke out Israel against Egypt and Syria. They went against Israel and sided up with Egypt and Syria, They stopped selling oil to the United States. In March 1974 OPEC started selling oil to the United States again, the price had quadrupled.

The 2 main reasons OPEC was created.

The first reason OPEC was created was because more government spending on social programs and the war in Vietnam raised prices, The second main reason was the nations need for foreign oil. The United States received much of its oil from the Middle East. Many of these countries belonged to a Cartel.
World Energy And Economy Hot Topic OPEC 1

The conflict with the United States

OPEC nations sided with Egypt and Syria they stopped selling to the United States because the US helped Israel with the war so therefore during that time that led problems to the US between Fall 1973 and March 1974 car needed gas and many factories and schools closed because they needed oil.

Resolution to the US conflict

After they had resolved OPEC started selling oil to the United States again, but this time OPEC quadrupled the price on the oil just for the United States.