HISTORY
HISTORY OF THE MIDDLE EAST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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OPEC was not producing enough oil to meet demand
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OPEC was protesting the United States cutting off the sale of supplies to Japan
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OPEC was taken over by Germany, who was still seeking revenge after World War II
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OPEC was protesting the United States’ support of Israel in the Middle East
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Detailed explanation-1: -During the 1973 Arab-Israeli War, Arab members of the Organization of Petroleum Exporting Countries (OPEC) imposed an embargo against the United States in retaliation for the U.S. decision to re-supply the Israeli military and to gain leverage in the post-war peace negotiations.
Detailed explanation-2: -The OPEC oil embargo was an event where the 12 countries that made up OPEC at the time stopped selling oil to the United States. The embargo sent gas prices through the roof. Between 1973 and 1974, prices more than quadrupled. The embargo contributed to stagflation.
Detailed explanation-3: -The crisis eased when the embargo was lifted in March 1974 after negotiations at the Washington Oil Summit, but the effects lingered throughout the 1970s. The dollar price of energy increased again the following year, amid the weakening competitive position of the dollar in world markets.
Detailed explanation-4: -Crude oil production by the Organization of the Petroleum Exporting Countries (OPEC) is an important factor that affects oil prices. This organization seeks to actively manage oil production in its member countries by setting production targets.
Detailed explanation-5: -Overall the oil embargo had a sharply negative effect on the Canadian economy. The economic malaise in the United States easily crossed the border and increases in unemployment and stagflation hit Canada as hard as the United States despite Canadian fuel reserves.