Wednesday, March 11, 2009

Development prices of oil

The prices of the oil behave as the prices of whichever comodity. When the demand for oil increases, the prices grow up, too. On the other hand when the offer of the oil increases, the prices fall.

The price cycles of the oil:
After the Second World War the price of the oil was 1,17 dollars for barrel. The oil states don´t like low prices consequently they attempted to make a cartell.

In the year 1960 the organization of OPEC was found. This organization connects the biggest exporters of the oil: Irak, Iran, Kuwait, Saudi Arabia and Venezuela. In 1973 come an unexpected event. Syria and Egypt attacked Israel. The Western countries wanted to protect Israel. Most arabian states declared embargo on the export of oil into the USA and West Europe. One year the price of the oil increased on the 14th multiple – 12 dollars for barell.

The next important moment in the history of world economies were years 1979-1981. First came the islamic revolution, then went on with the war between Iraq and Iran. The price of the oil increased to 35dollars for barell.

We will continue in the next article


No comments:

Post a Comment