Which organization is responsible for the oil embargo that caused sharp increases in oil prices in the early 1970s?

Which organization is responsible for the oil embargo that caused sharp increases in oil prices in the early 1970s?

• A. Organization of Petroleum Exporting Countries
• B. Organization of Arab Petroleum Exporting Countries
• C. Gulf Cooperation Council
• D. International Energy Agency

Answer: (B)

The key idea is how coordinated political action by oil producers can drive big shifts in prices. The oil embargo of the early 1970s was organized by Arab oil producers through the Organization of Arab Petroleum Exporting Countries, a bloc formed to align and coordinate petroleum policy among Arab members. This group specifically orchestrated the decision to withhold exports to pressure Western nations, leading to sharp price increases as supply tightened. The Gulf Cooperation Council is a later regional bloc focused on broader economic and security collaboration, not the source of the embargo. The International Energy Agency was created by OECD countries to respond to oil supply disruptions, not to impose embargoes.

The key idea is how coordinated political action by oil producers can drive big shifts in prices. The oil embargo of the early 1970s was organized by Arab oil producers through the Organization of Arab Petroleum Exporting Countries, a bloc formed to align and coordinate petroleum policy among Arab members. This group specifically orchestrated the decision to withhold exports to pressure Western nations, leading to sharp price increases as supply tightened. The Gulf Cooperation Council is a later regional bloc focused on broader economic and security collaboration, not the source of the embargo. The International Energy Agency was created by OECD countries to respond to oil supply disruptions, not to impose embargoes.