Oil is, without question, one of the most valuable resources in the world. In fact, this level of value is one of the reasons why we tend to pay top dollar for fuel so that we can keep our cars going strong. Oil prices were even higher, though, which you will discover as you look back at moments in history. This brings us to the topic of the OPEC embargo and here is what Robert Jain, as well as other names in finance, can tell you about it.
It's important to look at the state of America to better understand the impact of the OPEC embargo. During the late 60s to early 70s, the United States saw a growing demand for oil. After all, this was the main fuel source for everything from cars to factory machinery. The problem, however, lied in the fact that the demand simply couldn't be met at such a quick pace. This led to an oil embargo, which was put in place by the Organization of Arab Petroleum Exporting Countries in 1973.
What resulted from this oil embargo, among other things, was the halted production of oil in general. This led to its value increasing over time, albeit in a superficial way, and it became so costly that the majority of people couldn't afford it. This oil shortage impacted a number of establishments as well, as everything from schools to hospitals were without sufficient power. In short, according to names such as Bob Jain, this embargo affected everyone in some way or another.
Car owners had to be more mindful of what they traded, sold, and purchased, too. With this oil shortage, more fuel-efficient vehicles became popular, which meant that the latest Chevy might not have been the best purchase for most. In fact, it might have ended up costing the average buyer more, largely due to the surplus of fuel that such a car required. The majority of people had to stick to cars that used less fuel, since they tended to cost less in the long term.
These are just a few details to know about the OPEC embargo and the impact that it had around the world. If there is one lasting effect that seems to outline every other, it's that it encouraged countries to focus less on worldwide oil resources and more on those that can be found more locally. They wouldn't encounter as much OPEC involvement this way. Even though the cost of fuel may still be high by modern standards, it's leagues above what people had to endure decades ago.
It's important to look at the state of America to better understand the impact of the OPEC embargo. During the late 60s to early 70s, the United States saw a growing demand for oil. After all, this was the main fuel source for everything from cars to factory machinery. The problem, however, lied in the fact that the demand simply couldn't be met at such a quick pace. This led to an oil embargo, which was put in place by the Organization of Arab Petroleum Exporting Countries in 1973.
What resulted from this oil embargo, among other things, was the halted production of oil in general. This led to its value increasing over time, albeit in a superficial way, and it became so costly that the majority of people couldn't afford it. This oil shortage impacted a number of establishments as well, as everything from schools to hospitals were without sufficient power. In short, according to names such as Bob Jain, this embargo affected everyone in some way or another.
Car owners had to be more mindful of what they traded, sold, and purchased, too. With this oil shortage, more fuel-efficient vehicles became popular, which meant that the latest Chevy might not have been the best purchase for most. In fact, it might have ended up costing the average buyer more, largely due to the surplus of fuel that such a car required. The majority of people had to stick to cars that used less fuel, since they tended to cost less in the long term.
These are just a few details to know about the OPEC embargo and the impact that it had around the world. If there is one lasting effect that seems to outline every other, it's that it encouraged countries to focus less on worldwide oil resources and more on those that can be found more locally. They wouldn't encounter as much OPEC involvement this way. Even though the cost of fuel may still be high by modern standards, it's leagues above what people had to endure decades ago.
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Get in touch with Bobby Jain if you'd care to discover more about finance in general.. Also published at The Importance Of The OPEC Embargo, With Robert Jain.
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