StudentShare solutions
Triangle menu

Oil Embargo: Its Effects on the Price, Supply and Demand of Oil in the US - Essay Example

Nobody downloaded yet

Extract of sample
Oil Embargo: Its Effects on the Price, Supply and Demand of Oil in the US

The primary effect of the oil embargo was price increase, not supply disruption. Although countries such as the US, Netherlands, France and Britain experienced very tight oil supplies, and countries who continue to ally themselves with Israel suffered even more repercussion in terms of provision of oil supply, this strategy did not succeed in winning their political demands against Israel. Nevertheless, the Arabs grew enormously wealthy from the oil embargo.
On the other hand, countries started looking for other potential sources of oil. Old fields were expanded and new fields were discovered such that supply of crude oil increased. This likewise resulted to other sources of oil such that the Middle East was no longer the dominant world supplier of oil. These transformations changed the position of the Middle East particularly in their strategy of using oil as a weapon. Saudi Arabia has disavowed this practice since the country, including others in the Middle East need the cash flow from their oil.
During the past 25 years, the nominal price of gasoline for the United States has risen at an average annual rate of 5.2% and the real price of gasoline rose only one-fourth of a percent per year. Gasoline prices reached a peak in 1981 and declined thereafter despite increase in real taxes. ...Show more


In October 16, 1973, the Organization of Petroleum Exporting Countries (OPEC) led by Saudi Arabia cut production and placed an embargo on shipments of crude oil to Western countries particularly the US and the Netherlands and a total boycott in Israel. This was a political strategy connected with the Yom Kippur War…
Author : uwalsh
Oil Embargo: Its Effects on the Price, Supply and Demand of Oil in the US essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Oil Embargo: Its Effects on the Price, Supply and Demand of Oil in the US"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Tracing the Post-WWII Economic History: Its Effects to Oil Price Instability
The changes in the oil price from time to time do not only affect one product’s price but also affect most prices of the basic commodities that are considered vital to living. This is true to all countries all over the world; even United States is not an exception.
6 pages (1500 words) Essay
Oil/petrol price analysis
The price rose to US$50 in 2005 from under US$10 in late 1998 and early 1999. Oil prices hit a record high level of over US$145 a barrel in July 2008. With the onset of the worldwide financial crisis and deep recession, a reduced demand for crude oil drove down prices as it had done in the past, and the price of oil dropped to US$34 in February 2009, gradually increasing to US$80 in January 2010.
6 pages (1500 words) Essay
Breton Woods Monetary System, Oil Embargo and International Political Economy
According to Friedon, J. and Martin, L. (2003, p.118), “the boundaries of IPE are not always clear”. It covers domestic trade politics, policies on FX rate, politics with the World Trade Organization (WTO), international trade of goods and capital, as well as the interaction between the domestic and international economic and political factors.
6 pages (1500 words) Essay
The Effects of Decreasing Oil Prices on OPEC Creator States
In September 1960, at the initiative of the Venezuelan Energy and Mines minister Juan Pablo Prez Alfonzo and the Saudi Arabian Energy and Mines minister Abdullah al-Tariki, the governments of Iraq, Iran, Kuwait, Saudi Arabia and Venezuela met in Baghdad to discuss ways to increase the price of the crude oil produced by their respective countries.
10 pages (2500 words) Essay
Impact of Oil Prices on the US Economy
The global economy is rising at a very fast pace and any corrective action by central banks or Government is not likely to have a perceptible effect if recession sets in. The dependence of the economy on oil has reduced considerably with the strengthening of the IT and services sectors.
7 pages (1750 words) Essay
Discuss the factors that affect the market price of a product (part A) and (part B) describe the trend in world price of oil over the past two decades and discu
The history of the trends in oil prices provide a clear understanding of the manner in which the factors that affect the price of a product have come into play and the manner in which these factors have brought the price of oil to what it is today. The
6 pages (1500 words) Essay
Impact of the world recession on the oil market 2008-2010
Various institutions in the financial market had started to fail, which had spiraled a series of event, which led to this whole crisis. On September 2008, Lehman Brothers, one of the largest investment bank in the US failed. This eventually led to lose of confidence
10 pages (2500 words) Essay
Breton Woods monetary system, oil embargo and International Political Economy
er.” It considers various cultures and their response as a country or organization to certain political initiatives that have an impact on international trade, socio-economic changes and developments, including but not necessarily limited to the market developments. According
6 pages (1500 words) Essay
To what extent is the global financial crisis related to greater volatility in the prices of oil and gas To what extent does it facilitate the contagion of price movements from one commodity to another
From the developed to the developing nations, its impact has been extensive, impacting on the economic, to the political, and to the socio-cultural lives of the people. It has also had a major impact on the volatility of oil and
20 pages (5000 words) Essay
Assess the extent to which governments shape the global oil economy. In your analysis, consider the respective roles of nature, industrial structure and war
In most countries oil determines the dynamics of economy, when oil prices rises inflation is bound to rice significantly and vice versa. It doesn’t mean that oil producing countries are not affected
5 pages (1250 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us