Arab oil. However, during the 1960s, OPEC was not the powerful force that it developed into during the 70s. Initially, OPECs intentions were merely to defend the oil-producing countries from the monopolistic tendencies of the oil companies. Venezuela initiated the policy of unifying and coordinating oil prices not to strike back at the oil companies, but in order to avoid the vast competition of the Middle Eastern markets. Initially, OPEC members attempted to create a public awareness about the oil industry and the effect of petroleum on world economics. Also, OPEC members found it advantageous to exchange information concerning the oil industry and how to exploit the demand for oil in other regions. As a result of this public awareness and knowledge of the petroleum industry, the Arab governmentstranslated those desires into a serious attempt to establish cooperation in oil affairs among the Arab countries (Al-Otaiba, 51). This gradual accumulation of interest in the revenues of the world oil market would reach its full potential during the 1970s.In 1968, Saudi Arabia, Kuwait, and Libya agreed to form an organization which served to promote nations in which oil constitutes the basic source ofnational income (al_Sowayegh, 100). The organization they founded, the Organization of Arab Petroleum Exporting Countries (OAPEC), decided that their objectives would be similar to those of OPEC, but centered towards the goals of the Arab nations. In order to punish the United States for their financial and military support of Israel, and as a result of the devaluation of the dollar, OAPEC met in 1973 to decide the drastic actions that it would ultimately take. OAPEC took a firm stand on this issue and decided to cut back oil production and exports by 5% per month, and to place an embargo on the United States until the Israeli issue was settled. Furthermore, Arab countries decided to raise crude oil prices by 70%. This price increase, c...
