This did not make the Arabs happy, leading to the members of the OPEC together with Egypt, Syria, and Tunisia creating embargoes that aimed at hurting the U.S and all those countries supporting it. However,…
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This caused a crisis that led to the destabilization of several developed and developing countries, bringing about the debate on whether the dependence of oil was ideal for economies around the world. Industrial powers within the western hemisphere were affected, and the support for Venezuela and Ecuador increased as their prices were fair enough to those countries in support of Israel2.
Initially, the formation of the OPEC (Organization of Petroleum exporting countries) in 1960 aimed at making sure that the countries were protected from the incidences of market prices shaped by developed nations against the rest of the society. They wanted to protect exporting countries by coordinating the petroleum policies across the world, not giving one country the leeway to dictate things happening in the petroleum industry. OPEC wanted to ensure that the stabilization of oil markets was based on agreed policies and provide new means of securing the economic efficiency expected when making the regular supply to OPEC members3. Any investment made was supposed to provide new methods of creating a steady income for the sake of entrusting the society with better profits. Oil prices dictate the state of the economy in many countries, and that has been a critical aspect of development across the world. OPEC handles all complaints and has to make decisions based on the interests of everyone involved in the process of oil production. They also wanted to resist the pressure that the major western oil-producing companies that could trigger oil price spikes without allowing them to make any choices4.
During the embargo, the countries mainly Arabic countries, made the unilateral decision to hike the prices and cause a disruption in the world oil prices. The price per barrel at the period between 1960 and 1971 was at $1.75. By mid-1973, the price had risen to $3.29 a barrel, and this was after negotiations. After the conflict had begun, the OPEC members raised the price to
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US have the largest economy in the world and have been using oil to fuel its economy. It has been depending on oil from the Middle East and this has been one of the things that have been affecting the relationship between the two sides. (Ariel, 2006)
There have been many instances in the history of the two sides when they have been adversely affected by this kind of dependence.
Conflict was sewn into the fabric of the Middle East when an Israeli state was established in the Palestinian homeland without any provision being made for the Palestinians. Further, when political boundaries of the Arab states were set without regard to ethnicity or religious heritage, it set up a situation in which Shiite and Sunni Muslims, Jews, Coptic Christians, Kurds and others were forced into a political power vacuum that bred resentment when one or the other religious group inevitably came to dominate the government of any given country.
ntly ignored, Khalidi outlines the important points to consider when attempting to discern why Middle Eastern resistance has been so stubborn and uncooperative. More than just a simple misunderstanding between what is actually happening in Iraq and what Americans know of
The OPEC monopoly, the primary source of income to an already conflict-heavy region, the favorable relationship between countries like Saudi Arabia and major powers in the West such as America... all are in peril when peak oil
The region produces 75% of the total global oil demand. The developed nations such as America and European countries have been the main beneficially of the Middle East oil. This indicates that there is a significant dependency of usage of fossil fuels and
The Middle East earns a lot of revenue from oil exports but who gets what from the price paid for each barrel of oil? According to OPEC reports, there is a wide variation across G-7 countries as pertains to oil prices due to varying levels of oil taxes. It is apparent that the oil importing companies end up having more revenue than the oil exporters.
GDP of USA is $15,680 billion; making it 5.81 times the total GDP of the Arab League. Comparison of China with the Arab league leads to China’s GDP ranking as second. The GDP of China is 3.05 times the total GDP of the Arab league; as it was estimated to be $8,227 billion.
ee countries, for instance, the countries has seen an improvement in their international relations with some of the most influential countries of the world such the United States, Britain, Germany and Russia among others. Russia, in particular, has made huge investments in Saudi
among others, the Islamic states unified under the Arab Spring have undergone tremendous changes towards the formation of the current political institutions. The Shia and Sunni Muslim groups have been influential to the changes that have occurred in the Islamic nations because
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