Organization of Petroleum Exporting Countries
In 1973, as a result of the Arab oil embargo against Western nations who supported Israel during the Yom Kippur War (see Arab-Israeli Wars), OPEC was able to raise oil prices significantly; the price hike caused inflation in oil-importing nations. Further increases ensued but by 1982, as importing countries pursued alternate energy resources and policies designed to reduce oil consumption, OPEC was forced to lower prices. Subsequently OPEC has at times been able to raise oil prices by cutting production, though it has needed the cooperation of major non-OPEC oil-exporting nations to do so. More often, prices have fluctuated in response to changes in demand and to national or international instability and conflict that have reduced or threatened to reduce oil production.
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