Wednesday, December 16, 2009

Will the war in Iraq bring another oil crisis?

Will the war in Iraq bring another oil crisis? Will the scene of the 1973 oil crisis happen again?Explain please.Will the war in Iraq bring another oil crisis?
It already has, thus the drastic and continuing increase in gas prices that happened when the invasion/liberation (depends on your point of view) of Iraq began. Whilst an increase was seen in 1973, but there was a much bigger one around 1980 (the Iran/Iraq war). There was also a sharp peak in 1991 (Gulf War).





I'm guessing that the 1973 link is intended to show that it's really the fault of the oil producing countries as the '73 oil 'crisis' was caused by an embargo by OAPEC as a reaction to the Yom Kippur War, but if you look at a graph of historical oil prices ( http://www.wtrg.com/oil_graphs/oilprice1鈥?/a> ), that was nothing compared to the price increases caused by war in the oil producing countries.





In summary: Current oil shortages caused by war, not embargo. The comparison to 1973 is invalid but yes, wars in major oil producing countries cause oil shortages. No surprise there.Will the war in Iraq bring another oil crisis?
WILL it bring another oil crisis my homework loving friend? search for oil price increases since 2002 on google; you'll see that oil is steadily rising in price ever since the invasion.....
Hmm, I smell another homework question

No comments:

Post a Comment