The oil industry has very clear players, there are countries that consume the most of the oil production and there are countries that produce almost all oil. On the side of the biggest oil consumers are the US and Europe and on the side of the greatest Oil producers are countries like Saudi Arabia, Iran, Iraq, the United Arab Emirates and others. The Oil producers saw an opportunity to have major power and influence the price of oil by establishing an organization, so they unite and created the OPEC (Organization of the Petroleum Exporting Countries). As a counter measure Oil Consumers decided to create also an organization, called International Energy Agency to represent their interests. Today the EU imports around 40% of its oil from the Organization of the Petroleum Exporting Countries (OPEC) and the US around 35%.[i]
These countries have been having disputes since their organizations were created; many countries have made things more complicated, where others have been trying to alleviate controversies. These are the cases of the US, which has been having a history of bad relationships with the OPEC members, and of the EU that since 2000 has been trying to have a better relation with OPEC members.
The US relationship with OPEC
The US and the OPEC members have been having disputes since 1960 when the US created a protectionist legislation to reduce the import of foreign oil and the these countries created the OPEC to counter the legislation.[ii] This was not pleasant for the US because it meant that Oil producer countries would have the power of Oil prices. The OPEC members have been influencing the Oil prices with different measures, disputes, techniques. “In 1973, Middle East countries initiated a boycott against the US as punishment for backing Israel in the war. In 1979, the Islamic Revolution in Iran, along with the ensuing war with Iraq disrupted prices. Finally, Iraq’s 1990 invasion of Kuwait... [continues]
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