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When oil grew to become a political weapon, by Akram Belkaïd (Le Monde diplomatique

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Panic shopping for: queuing for laundry detergent, Tokyo, 1974

Asahi Shimbun · Getty

In October 1973, when Arab oil producers massively elevated the worth of crude and minimize manufacturing, the world’s richer nations floor to a sudden halt. In Europe and North America, there have been lengthy queues for petrol and pump costs soared. Western governments, confronted with shortages, rationed gasoline for the primary time for the reason that second world warfare; the media mentioned limitless methods to save lots of power, from easy to elaborate; and lots of Western nations launched daylight saving time. Cartoons of Arab sheikhs stuffing their pockets with petrodollars mirrored the temper.

Inside months the worth of crude rocketed from $2.50 to $18 a barrel and richer nations went into a protracted disaster, with hovering unemployment, rising inflation and sluggish financial exercise (‘stagflation’). Oil-importing nations have been shocked to search out that the period of low cost hydrocarbons — cheaper than Florida orange juice, individuals mentioned on the time — was over.

Like each historic occasion, the 1973 oil disaster had a particular set off, but additionally structural causes. The catalyst was the Yom Kippur/Ramadan warfare (6-25 October 1973) between Israel and Arab nations led by Egypt and Syria. A variety of Arab oil-exporting nations tried to affect the result by taking three key measures: elevating the posted value of oil by 70%, lowering their output by 5%, and suspending shipments to nations that had straight supported Israel with arms shipments, primarily the US and the Netherlands.

Expertise is an actual enemy for OPEC. Expertise will scale back consumption and enhance manufacturing from areas exterior OPEC

Sheikh Yamani

Opposite to standard perception, the worth enhance and embargo have been determined not by OPEC (the Organisation of the Petroleum Exporting International locations) however by OAPEC (the Organisation of Arab Petroleum Exporting International locations). OAPEC, based in 1968 and primarily based in Kuwait, was initially set as much as counter rising radicalism in some Arab oil-producing nations that (…)

Full article: 1 323 phrases.



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