Oil and Economic Recession
Two months ago (Sep. 2000), the world’s economies faced a great problem. The oil price went enormously up and the Dollar followed the same tack. It was made very clear that almost all countries would have a serious problem due to oil’s importance. Oil provides fuel for heating, transport, and machinery, and is a basic input for petrochemicals and many household products ranging from plastic utensils to polyester clothing. From the beginning of this century until 1973 the use of oil increased steadily. Economic activity was organized on the assumption of cheap and abundant oil.In 1973-74 there was an abrupt change. The main oil-producing nations belong to OPEC(the Organization of Petroleum Exporting Countries). OPEC decided in 1973 to raise the price for which their oil was sold. OPEC thought that cutbacks in the quantity demanded would be small since most other nations were very dependent on oil and had few commodities available as potential substitutes for oil. Thus OPEC correctly anticipated that a substantial price increase would lead to only a small reduction in sales volume. It would be very profitable for OPEC members. Between 1973 and 1974 the price of oil tripled, from $2,90 to $9 per barrel. After a more gradual rise
. . .
Some common words found in the essay are:
Kuwait August, Countries OPEC, , Iran Iraq, Saudi Arabia, Hussein Attributed, Arabia Prices, oil prices, increase oil, increase oil prices, $30 barrel, economic recession, drh exchange rate, 2000 oil prices, october 2000 oil, dollars value, world economy, 1990 prices, 2000 oil, exchange rate, 400 drh exchange, october 2000,
Approximate Word count = 1041
Approximate Pages = 4 (250 words per page double spaced)
|
 |
