Who is OPEC?

I have always heard that gas prices are controlled by a mysterious organization called OPEC. I say mysterious because I don’t know who or what OPEC is. So I looked them up. OPEC, first of all, stands for The Organization of the Petroleum Exporting Countries, including Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

According to Wikipedia, in the 70’s, the Arab members of OPEC implemented oil embargoes thus causing the 1973 oil crisis. An embargo means a ban on commerce and trade. Looking a little into the 1973 oil crisis, I found that the reason for the oil embargo was a reaction to the U.S. decision to re-supply the Israeli military during the Yom Kippur War. Because of the oil embargo there was an “economic recession throughout the world. Unemployment flew to the highest percentage on record while inflation did the same.”

Leaving off here for now with more questions needing to be answered.


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