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Shalnov [3]
3 years ago
5

How did the oil embargo place on the united states by the OPEC negatively impact the US

History
1 answer:
Sedaia [141]3 years ago
8 0

The OPEC oil embargo was an incident during which the 12 OPEC countries stopped exporting oil to the United States. The embargo sent the price of gas through the roof. Prices more than quadrupled from 1973-1974.

<u>Explanation</u>:

  • OPEC was founded by Iran, Iraq, Saudi Arabia, Venezuela and Kuwait in 1960 with the main objective of raising oil prices. OPEC had little effect on oil prices but a rise in demand and a fall in U.S. oil production.
  • Extracting oil and natural gas has decreased the quantity of the oil that the U.S. has to import, and added employment, investment, and development to the economy.
  • The embargo played a role in stagflation. Oil discovery and refining is again a significant US industry.
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