members – Saudi Arabia, Iraq, Iran, Kuwait, Qatar, and Venezuela – controlled over 80% of the world’s crude exports at that time.
Then in 1967, Syria, Egypt, and Jordan attacked Israel in the Six Day War. The U.S. and Britain supported Israel in the conflict. And in retaliation, OPEC declared an oil embargo on exports to those countries. Prices started to rise as demand in those areas exceeded supply. The U.S. increased production by 1 million barrels per day to compensate. In 1972, U.S. oil production peaked at 9 million barrels of oil per day… making it not only the largest consumer of oil in the world, but also the largest producer. Boom! In 1973, oil prices went from trickling higher to a full-on boom when another oil embargo sent the global price of oil soaring.
In October of 1973, Syria and Egypt once again attacked Israel in the Yom Kippur War. And again, OPEC declared an embargo on Israel’s allies – namely the U.S. and U.K.
25
Made with FlippingBook - Online Brochure Maker