Understand what the oil crisis was

It is now known that oil is a natural resource exhaustible. In other words, the closer to the end, the more expensive it becomes, which results 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 leads to different conflicts between these regions until nowadays.

The oil crisis occurred just at times that exporting countries and members of OPEC (Organization of the Petroleum Exporters) and the Persian Gulf prevented the distribution of raw material for the US and European countries – this has happened three times since The Second World War. Thus, more specifically, the crisis started in 1970s, when it was also discovered that oil is not renewable. Per Consequently, the price of the product suffered several price increases, causing reflexes in the market.

The first moment of crisis occurred in 1956, when the Egyptian president 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 generated a protest to the support given by the USA to Israel. The third occurred during the political crisis in Iran that disorganized the production sector in the country.

In 1991 the Gulf War started, where a The confrontation involving Kuwait, Iraq and the USA caused fires in Kuwaiti oil, causing a great ecological and financial impact. Per Finally, 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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