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Oil Consultation Comission
The multinational oil companies (MOCs) unilaterally reduced their posted prices for Venezuelan and Middle Eastern oil by 10 percent. The ministers of Saudi Arabia and Venezuela were both unhappy with the price cuts established the Maadi Pact or Gentlemen's Agreement, calling for an "Oil Consultation Commission" of exporting countries to establish the Maadi Pact or Gentlemen's Agreement, calling for an "Oil Consultation Commission" of exporting countries. -
Baghdad Conference
Organization of the Petroleum Exporting Countries is an intergovernmental organization of 13 petroleum-exporting nations, founded in 1960 by the first five members, and headquartered since 1965 in Vienna, Australia.The Baghdad conference created the Organization of the Petroleum Exporting Countries. The five founding members are Iran, Iraq, Kuwait, Saudi Arabia, Venezuela. As of 2016, OPEC's members are Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabi -
Arab-Israeli war
The Arab majority of the OPEC declared an oil embargo against the United States and other industrialized nations that supported Israel in the Yom Kippur War. This resulted in a large increase of oil prices which led to immense rationing. The 1973–1974 oil embargo had lasting effects on the United States and other industrialized nations, which established the International Energy Agency in response. -
Special Fund
OPEC added to its goals, of selling oil, for the socio-economic growth of poorer nations. The OPEC Special Fund was conceived in Algiers, Algeria, in March 1975, and was formally established the following January. "A Solemn Declaration 'reaffirmed the natural solidarity which unites OPEC countries with other developing countries in their struggle to overcome underdevelopment,' and called for measures to strengthen cooperation between these countries. -
Hostage Situation
In mid-December, Saudi Arabia's Ahmed Zaki Yamani, Iran's Jamshid Amuzegar, and the other OPEC oil ministers were taken hostage at their semi-annual conference in Vienna, Austria. The terrorist attack, led by Venezuelan terrorist Carlos The Jackal, planned to take over the conference by force and hold for ransom almost all attending oil ministers.The attack was later revealed to be led by a founder of the Popular Front for the Liberation of Palestine. -
Iraq-Iran War
The Iraq-Iran War begins within days of the beginning of OPEC’s annual meeting. Over the course of eight years, the conflict will send production plummeting. It is the first war between OPEC members. -
Oil Glut
Prices crash in response to an oil glut and change in consumer habits with Brent dropping to a low of $8.75 a barrel. OPEC finally abandons its fixed pricing structure and cuts prices to try to win back market share. OPEC introduces production quota system. -
Price Band Mechanism
OPEC president Venezuela announces "a price band mechanism" in March, dictating the group will automatically reduce supply if oil falls below and automatically increase output if it rises above a $22-$28 range. The mechanism is quietly abandoned in 2005 and since then the group has preferred not to specify prices, although since the price crash and recession of 2008, it has indicated a range it considers comfortable for producers and consumers. -
9/11
9/11 attacks on the World Trade Centre in New York lead to a fall in the value of oil. Terror rocks the world's largest economy and largest energy consumer. -
Production Cut
The differing economic needs of OPEC states often impact the internal politics behind the OPEC production quotas. OPEC announced the largest production cut in its history as the financial crisis sent prices plunging from a record $147.27 a barrel in July, 2008, to near $30 by the year- end. Oil prices then climb 78 percent during 2009.
