The Arab Use of Oil: October 1973—July 1974

Abstract

Davis J. The Arab Use of Oil: October 1973-July 1974. Cooperation and Conflict, XI, 1976, 57-67.

What happened in the period October 1973-July 1974, with respect to the Arab use of the oil 'weapon'? How did it happen and why? The embargoes, production cuts, and price rises which characterized the period were not the result of a tightly knit 'cartel'. Neither were they the product of sheer happenstance. In fact the events of this period were the logical outcome of historical trends in the international petroleum industry and of the delicately balanced Arab coalition against Israel. In this latter respect, crude oil was used as a means of diplomatic leverage, as a complement to Arab objectives both in the October war and in the round of diplomacy which ensued. Nor should the rise in prices during this period be credited wholly to the Arab nations. Iran was the 'hard-liner' in the critical meeting of the 'Gulf Six', whose decisions have resulted in one of the most massive resource transfers in history.

Jerome D. Davis, Institute of Political Science, University of Aarhus, Denmark.