In the early 1970s, OPEC's goal was to: a. decrease the world-wide price of oil so that the quantity demanded increases, thus raising total revenues for OPEC members. b. increase the world-wide price of oil by reducing the quantity of oil supplied. c. increase the world-wide price of oil by increasing the quantity of oil supplied, thus raising total revenues for OPEC members. d. decrease the world-wide price of oil so that quantity demanded increased.

Question

Elsie Owens

History

20 February, 14:35

In the early 1970s, OPEC's goal was to: a. decrease the world-wide price of oil so that the quantity demanded increases, thus raising total revenues for OPEC members. b. increase the world-wide price of oil by reducing the quantity of oil supplied. c. increase the world-wide price of oil by increasing the quantity of oil supplied, thus raising total revenues for OPEC members. d. decrease the world-wide price of oil so that quantity demanded increased.

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Answers (1)

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Atticus Walker · Answer 1

B. Increased the world-wide price of oil by reducing the quality of oil supplied is the correct answer.

Explanation:

OPEC stands for Organisation of the Petroleum Exporting Countries. It is a multinational organisation which was established to prevent the oil producing nations from lowering the price of oil. Its headquarters was located in Geneva and later moved to Vienna in 1965. It was established after a conference held in Baghdad on 10-14 September, 1960. The initial members were Iraq, Iran, Kuwait and Venezuela.

Their main goal was to secure control over their petroleum resources, hence they nationalised their oil reserves and changed the contracts with major oil companies and ultimately in 1970 raised oil prices by 70 percent.

In 1970, due to Yom-Kippur war the Arab oil nations declared embargo on supplying the oil to US and Netherlands because they supported Israel, the embargo caused oil crisis in the west.