During the 1970s, a sharp increase in oil prices, initiated by the Organization of the Petroleum Exporting Countries (OPEC), severely impacted global economies. Unlike cartels formed by private companies, OPEC is managed by the governments of its member nations, including Saudi Arabia and other major oil producers. [2] Leveraging their high market share of the world's oil resources, these nations collaborated as a cartel, which gave them considerable market power. By jointly restricting their supply, they were able to significantly raise the market price and increase their profits.