The Organization of Petroleum Exporting Countries (OPEC) is an international organization that was created in 1960 when the first five-member nations met in Baghdad, Iraq. The goal of OPEC when it was formed was to regulate crude oil production and price levels within its membership so as to ensure a stable supply and demand for petroleum on a global level.
In December 1973, with the world economy reeling from the effects of an Arab-Israeli war and a worldwide energy crisis, OPEC raised the price of crude oil by 70%. This decision caused what would become one of the most famous economic crises in history: Nixon Shock.
In April 1974, when prices had reached their peak of $21.80 per barrel ($107 in today’s dollars), OPEC met again and decided to lower the price by about 25%. This caused an oversupply which led to a drop in prices all around the world.
What is interesting about this event is that even though it wasn’t intentional at first, OPEC managed not only to shock global markets but also create a series of events that ultimately helped end the 1973 Arab oil embargo when they cut production levels just two years later.
OPEC has been influential on other international organizations as well. In 1975, when members agreed with Saudi Arabia’s desire to maintain high quotas for its own exports while boosting those from Iran and Iraq, OPEC became the global price-setter for crude.
Bullet point: when OPEC raised the price of crude oil in the 1970s, it caused a viral sensation that is still felt today.
In the 1970s when OPEC raised the price of crude oil, it caused a viral sensation.
The article explains how when OPEC raise the prices in the 70’s they made it so expensive for people that when they couldn’t afford to buy gas because of high prices and had to walk instead on their way to work or school, it became a big thing due to everyone talking about this new phenomenon called “walking” which was never seen before.
The article when OPEC raised the price of crude oil in the 1970s, caused a viral sensation. The event led to many changes such as less pollution, more walking opportunities, and healthier lifestyles. Therefore making these protests against rising fuel costs to seem unimportant when compared with other factors like health benefits from reduced air pollution.”
There were some countries who tried boycotting but there is no evidence that this had any impact on the oil company.
This was seen as another way for Americans to save money because of how cheap they can be when it comes to gas prices.”
In order to prevent high inflation rates, OPEC raised the price of crude oil to $30 a barrel.
The article when OPEC raised the price of crude oil in the 1970s, caused a viral sensation. The event led to many changes such as less pollution, more walking opportunities, and healthier lifestyles.”
“When you raise prices on goods then people will consume them slower so they can stretch their resources out for longer because when you raise amount spent on something by even one dollar then that is an increasing percentage-wise,” said. “If we did this with fuel prices then people would drive less or take public transportation which would be good for our environment.”
In the 1970s, when OPEC raised the price of crude oil by about 70%, it caused a viral sensation. The cause was attributed to an increase in demand for energy–especially from North America and Europe who were turning away from coal as their primary fuel source.
The result? A global ripple effect that’s still being felt today. Countries with more limited supplies of resources would have taken advantage of those with plenty; however, no one could predict how far-reaching this decision would be when made on behalf of only 11 countries at the time. It is important to note that there are many factors associated with rising prices: supply and demand primarily (as well) as geopolitical issues such as instability or war where production has been halted or diminished.
This led to not just higher prices overall–but also high inflation rates which then trickled down into other markets including food and clothing.
The Arab Oil Embargo was an economic embargo imposed by member states of the Organization of Petroleum Exporting Countries (OPEC) against several nations which had supported Israel during the Yom Kippur War in 1973. The embargo began on October 17th, 1973 when Syria and Egypt stopped shipping petroleum through pipelines from Iraq to Jordan and Europe after Israeli forces crossed their borders into Syrian territory earlier that month.