The international oil price rise 1973 Flashcards
What did Britain’s entry into the EEC in 1973 coincide with and what did it show?
The onset of an international crisis which showed however Britain and, indeed, Europe might organise themselves, they were dangerously susceptible to events in the outside world over which they had no control.
What was dramatically shown in 1973?
How strong OPEC had become when its Arab members chose to use oil as a weapon in their long-running conflict with Israel.
What did the Arab members of OPEC do in retaliation for the West’s support of Israel in the war?
Drastically reduce their oil supplies to those Western countries which they believed had sided with Israel.
Describe the cost of oil between 1973 and 1980.
It had increased from $2 to $35 per barrel.
Who was OPEC’s main target?
The USA, but all the other Western states whose economies were heavily dependent on oil suffered
What also became more expensive?
Not just fuel but all the many oil-based products such as plastics.
What was the result of this increase in price?
Rapid and severe inflation throughout the industrial world. In the decade after 1973, Britain had suffered a severe recession.
