Considered one of the most violent wars since WW2. Kuwait funded an approximate $14 billion to Iraq during this war, which left the country in Economic, Political and Social despair.
The initiation of the conflict with the invasion and annex of Kuwait. With the accumulating pressure on Iraq, this move was anticipated by certain allies.
The Organization of the Petroleum Exporting Countries was formed as in Intergovernmental organization aiming to stabilize the oil price rates. In 1990, when Iraq requested OPEC members to lower production of oil in order to raise the market value per barrel, some refused. This resulted in great losses of Iraq's revenues and inability to pay debts, indirectly becoming an inciting factor in the Gulf War.
The oil glut was a surplus of crude oil. In 1988 Iraq's Oil Minister, Issam al-Chalabi, stressed a further reduction in the crude oil production quota of Organization of the Petroleum Exporting Countries (OPEC) members so as to end the 1980s oil glut.
Oil productions in the Rumaila field (Iraqi territory), located near the International Iraq-Kuwait border decrease while they increase on the Kuwaiti side. Iraq alleges that Kuwait is exploiting oil with advance "slant-drilling" techniques, and estimate that $2.4 billion worth of oil was stolen. Iraq demands a compensation which is refused by Kuwait, dismissed as a ploy. This is one of the factors of the Gulf War.
Negotiations between Iraq and the OPEC Members (specifically Saudia Arabia and Kuwait) ensue. However they fail to reach a consensus.
A few days before the invasion of Kuwait, OPEC reveals that the United Arab Emirates and Kuwait have agreed to the previously refused limit their daily production of oil to 1.5 million barrels per day. However by this point, more than 100,000 Iraqi troops were situated along the Iraq-Kuwait border.