Gas Prices

8 Pages 1970 Words

ely stable. The headquarters were initially set in Geneva, but were later moved to Vienna in 1965. O.P.E.C.’s goal was to establish firmly unified prices amongst their members, but the organization was not always successful. In their quest for control over the world market of oil production, they have ran into several obstacles and setbacks. O.P.E.C. has barely survived being eliminated due to internal conflicts amongst its members. Since O.P.E.C. almost has a strangle hold on the worlds oil supply, The United States is extremely concerned with the areas instability. The Middle East and the Persian Gulf area, where most of the members are located, are extremely prone to wars, both civil and cross borders, plagued by religious battles, and positions of power are frequently overthrown, making it hard for any stability to come out of the area. Any time there is chaos in the Middle East, The United States thinks back on "…memories of other troubles in the Persian Gulf area: the Arab oil embargo in 1973-74, the Iranian revolution in 1979-80 and Saddam Hussein’s invasion of Kuwait in 1990." (1) The area is also vital to our allies, who would be crippled without Gulf oil, whose livelihood we are dependent on. In 1973 O.P.E.C. raised oil prices 70%. "The dominant Middle Eastern members of O.P.E.C. used succeeding price increases as a political weapon aimed at Western nations in retaliation for their support of Israel against its Arab neighbors in the so-called Yom Kippur War of October 1973. Prices were accordin...