What was the oil crisis?

It is already known today that oil is a natural resource exhausting. That is, the closer it comes to reaching an end, the more expensive it gets, factor resulting in a major financial dispute. In addition, the Middle East holds the largest reserves of oil, while the United States and Europe are the consumers, which causes in several conflicts between these regions to the present day.

The oil crisis occurred precisely at times in that the exporting countries and members of OPEC (Organization of Exporters of Oil) and the Persian Gulf prevented the distribution of raw material for the US and European countries – this has occurred three times since World War II. Thus, more specifically, the crisis began in 1970s, when it was also discovered that oil is not renewable. For consequently, the price of the product suffered several price increases, causing reflections on the market.

The first moment of crisis occurred in 1956, when the president of Egypt nationalized the Suez Canal, owned by a Anglo-French company, making supply in western countries was interrupted and causing a further price increase. The second moment was in 1973, with the Yom Kippur War, which sparked a protest for u.S. support to Israel. The third occurred during the political crisis in Iran that disorganized the production sector in the country.

Already in 1991 began the Gulf War, where a confrontation involving Kuwait, Iraq and the U.S. caused fires in wells of kuwaiti oil, causing a great ecological and financial impact. For the fifth moment of crisis was very recent: in 2008, movements speculative global scale caused the price of the product to rise 100% between the first six months of the year.


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