Average world oil prices fall by over 50 percent in 1986. There is wide use of netback pricing in 1986.
January 7: The United States invokes the International Emergency Economic Powers Act, halting imports of all goods and services of Libyan origin. US companies are prohibited from engaging in industrial or commercial contracts with Libya.
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 MMB/D.
June 8: Iraqi jets attack Assadabad satellite station.
June 30: The U.S. Treasury Department forces remaining U.S. oil companies to leave Libya but allows them to negotiate standstill agreements, retaining ownership for three years while allowing the Libyan National Oil Corporation to operate the fields.
July: Brent price dips under $9 per barrel. OPEC production rises to 20 MMB/D.
July 27: Iraqi jets attack central Iranian city of Arak. Iran threatens missile attack of gulf states supporting Iraq.
August 2: Hussein offers peace in open letter to Iran.
August 4: Reports of probable OPEC agreement on output quotas sends oil prices higher.
August 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 MMB/D to 16 MMB/D) and would raise prices immediately toward a target world oil price of $18 per barrel.
