ABSTRACT
New nationalistic governments with radically different economic and political approaches from their predecessors have emerged in a number of the oil-exporting countries. Their say in their national oil industries has increased tremendously, and their share in the profits has been greatly enlarged. As the oil weapon is most effective when it is collectively rather than unilaterally deployed, cohesion and cooperation among the various oil-producing nations is essential. It needs to be understood that internal conflicts such as the Iranian-Iraqi war are not in the producers' best interest and can only weaken their oil leverage. In their efforts to use oil leverage most effectively, the oil producers need to consider the counterleverage options open to the target nations. The November 1973 declaration issued by the foreign ministers of the European Economic Community, supporting the demand for an Israeli withdrawal from occupied Arab territories, was widely interpreted in the United States as a capitulation to the oil leverage.
