1978 world oil market chronology

• January: Student protests against government of Reza Pahlavi, Shah of Iran, begin, touching off a wave of political unrest and violent clashes between police and demonstrators. Throughout the year increasing anti-Shah activities are led by Muslim fundamentalists seeking to establish a Muslim state.
• March: Amoco Cadiz tanker runs aground off the coast of France, spilling 1.6 million barrels (250,000 m³)of crude oil. (Largest crude spill to date.)
• June Iran and Saudi Arabia block efforts of OPEC price hawks to fix the price of OPEC oil in a currency more stable than the U.S. dollar. Say world economy cannot support associated price increases. Are accused by hawks of being U.S. agents.
• September: Shah puts Iran under military rule. Muslim leader Noori arrested in crackdown of opposition groups.
• October: Iranian strikes; departure of foreign technicians. Pipeline fire drops Iraqi production from 600,000 barrels per day (95,000 m³/d) to 300,000 barrels per day (48,000 m³/d).
• November: Iranian oil production starts dropping.
• December: Iranian production hits 1.5 Mbbl/d (240,000 m³/d) in mid-December; 500,000 on December 27, a 27-year low. OPEC production rises 1.6 MMBD over two months due to increased Saudi production.
• December 17: OPEC decides on a 14.5 percent price increase for 1979, to be implemented quarterly.