OAPEC: Brand overview

Founded:January 9, 1968
Founder:Saudi Arabia, Kuwait, Libya

Established in 1968, the Organization of Arab Petroleum Exporting Countries, or OAPEC for short, was the brainchild of three nations: Saudi Arabia, Kuwait, and Libya, with its central office anchored in Kuwait. The inception of this alliance was majorly catalyzed by the aftermath of the 1967 Arab-Israeli war, specifically the Western nations’ favoring stance towards Israel. The Arab countries, particularly the oil producers, saw an opportunity to wield oil as a strategic tool in international diplomacy.

OAPEC’s most defining moment arrived in 1973 when it imposed an oil embargo against the US and certain Western allies. This was a direct consequence of the latter’s backing of Israel during the Yom Kippur war. The embargo had a ripple effect on global oil prices, which saw a fourfold surge. This event highlighted the formidable influence that Arab oil nations held over global markets.

With time, the association saw an influx of new members, such as Algeria, Bahrain, Egypt, Iraq, Qatar, Syria, Tunisia, and the UAE. Central to OAPEC’s mission has been orchestrating harmony among its constituents on subjects like production quotas, pricing strategies, and joint oil-related infrastructural projects. Their core aim revolves around fortifying Arab petroleum exports and assuring just compensation for them. Historically, their decisions have played pivotal roles in shaping oil prices globally.

In the contemporary setting, even though OAPEC might not be as pronouncedly dominant as in its heyday, it still stands as a crucial collaborative platform for Middle Eastern oil-exporting countries, especially in today’s unpredictable oil trading landscape.

Meaning and History

OAPEC Logo History