Nigeria, a sovereign nation with about 37billion barrels oil reserves continues to wait for a green light from the Organisation of Petroleum Exporting Country (OPEC) for a quota of crude to produce. Why? In any case, let us take a look at the price trends mapped against some major events in the Middle East and the world. The first decade plus of OPEC (1960-1973) actually saw a consistent fall in the real (inflation-adjusted) price of oil. Then, an upsurge in oil prices followed the Yom Kippur War, which started October 5, 1973 and triggered an Arab/OPEC oil boycott/threat of drastic reduction by five per cent per month in oil production (but not inventory) “until Israel withdrew from occupied territory”.
The embargo against the U.S. and Netherlands itself began October 16, 1973 and ended March 18, 1974, but the cutbacks ended in November 1973 (no cutback in December following Saudi Arabia’s reneging) for a total of about 340 billion barrels. Next, we had the 1979 Iranian Revolution (started January/February 1979), the Iran-Iraq war (September 22, 1980 – August 20, 1988), the Gulf War ( January 16 – February 28, 1991), 9/11 (September 11, 2001 demolition of New York World Trade Center twin towers, and attack on the Pentagon by Al-Qaeda operatives).
Part 1 of a 3 part series: