1980-1989 World Oil Market Chronology - 1986

1986

Average world oil prices fall by over 50 percent in 1986. There is wide use of netback pricing in 1986.

• February 3–4: OPEC fails to agree upon a production accord after a two-day meeting in Vienna.
• February: Iran captures southern Faw peninsula, starts northern offensive.
• May 7: Iraq bombs Tehran refinery.
• June: OPEC production-cut talks fail, ending in a tentative majority pact on an average 1986 ceiling of 17.6 Mbbl/d (2,800,000 m3/d).
• June 8: Iraqi jets attack Assadabad satellite station.
• July: Brent price dips under $9 per barrel. OPEC production rises to 20 Mbbl/d (3,200,000 m3/d).
• Jul 27: Iraqi jets attack central Iranian city of Arak. Iran threatens missile attack of gulf states supporting Iraq.
• Aug 2: Hussein offers peace in open letter to Iran.
• Aug 4: Reports of probable OPEC agreement on output quotas sends oil prices higher.
• Aug 12: Iran fires missile at refinery near Baghdad. Iraq raids Iranian terminal at Sirri Island severely disrupting Iranian exports.
• December 19: OPEC reaches an accord that would cut production by seven percent for the first six months of 1987 (from 17 Mbbl/d (2,700,000 m3/d) to 16 Mbbl/d (2,500,000 m3/d)) and would raise prices immediately toward a target world oil price of $18 per barrel.