Oil As A Weapon: How Black Gold Shook The World

Changes in oil prices are associated with the world economy and are often seen as the cause of inflation and recession. The cause of the increase in oil prices on the world market since the end of the Second World War to date is mostly political conflicts.

OilAfter 1945, the world began a period of economic recovery and a rise in living standards, and the auto industry began to develop. The increased demand for petroleum products surprised the oil industry, which was not ready to respond at the same time to the demands of the market, which was led by an increase in the price of crude oil. Between 1947 and 1948 there was an increase from 19 to 25 dollars per barrel of oil. In the 1950s, Iran nationalized its oil industry, resulting in a blockade from the United States and Britain. Iran’s boycott caused a shortage of crude oil at a monthly level and the shortage caused many restrictions in the daily use of petroleum products. Canada banned all private flights in the country as Britain ordered the reduction of civilian flights

The Suez Crisis in 1956 denied the world the supply of oil that raised the price for one year from $ 24 to $ 26 a barrel.

In 1960, OPEC organized an association called the symbolic “seven sisters”. OPEC is an association that has united seven global crude oil producers into one association. Initially, the association met Saudi Arabia, Kuwait, Iraq, Iran, Venezuela in order to join Qatar, Libya, United Arab Emirates, Algeria and Nigeria later on. At the beginning of the OPEC operation, OPEC itself was not aware of its geopolitical power. Throughout history, OPEC is beginning to strengthen its geopolitical position and so begins to use oil as its basic means of achieving goals on the geopolitical scene. The association stabilized the price and supply in the market, but also slowly reduced the price during the sixties.

Between 1973 and 1977, oil prices jumped from $ 19 to $ 51 per barrel thanks to the war between Israel and the Arab states. OPEC has imposed an embargo on the export of crude oil. The embargo has hit the countries that have decided to help Israel. Iranian Revolution 1978.-1979. created a new crisis that increased oil prices to $ 98 per barrel in 1980.

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