OPEC s Policies Influence on International Oil Market Prices - Reviewing the 1973-74 oil crisis

摘要

In this paper I try to look on the crisis of 1973-74 by presenting a case where OPEC members reacted upon major economic developments in the industrialized world. In the first part, I discuss why OPEC has not been able to act as cartel. In the second part I review the troubles in economy of USA which led to US do Ilar depreciation and demise of gold convertibility as a starting point for price increases in ear I y 1970s. Then I review the issues with increases in fuel and freight costs i n ear I y 1973 as a start for second round of pr i ce increase negotiations. The oi I embargo in the wake of Yom Kippur war is presented as a case where the global oi I redistribution and lack of disci pi ine among fel low oil producers reduced the effect of oil embargo.