Generally, oil prices have been rising since the turn of the 21st century, de making unconventional oil resources more economically viable. Wars, cuts in production, price controls and economic crises are a few examples of factors affecting oil prices, along with factors affecting demand such as uncharacteristically warm winters reducing demand for heating.
Suez Crisis: Offensive war between Egypt and France, the UK and Israel.
Yom Kippur War: An attack on Israel by Syria and Egypt in October 1973 sparked the Yom Kippur War. Western governments that supported Israel were subject to an embargo, mentioned previously in the section on OPEC. This resulted in a decline in oil supply by 4 million barrels per day caused by a decline in supply by 5 million barrels per day by OPEC members, partially mitigated by an increase in production by 1 million barrels per day by non-OPEC countries. The embargo lasted 6 months and crude production reduced by 7% during this time.
Iranian Revolution and Iran-Iraq War: The collective events of the Iranian Revolution and Iran-Iraq War resulted in a crude oil production reduction of 6.5 million barrels per day or 10% in 1980 compared to 1979.
US Oil Price Controls: During the same period as the Iranian Revolution and Iran-Iraq War the US continued to exert oil price controls making domestically produced oil 50% more expensive than oil imports. This did not promote the development or uptake of fuel efficient vehicles or more fuel efficiency full stop.
Gulf War: A war between a coalition force between 34 UN-authorised nations against Iraq in response to Iraq’s invasion and annexation of Kuwait to liberate Kuwait oil prices resulted in a price drop.
Asian Financial Crisis: Following years of growth, starting in 1997 several countries in Asia experienced an economic collapse. Oil production was slow to respond to the decline in demand. Countries most affected by crisis included Indonesia, Malaysia, Singapore, South Korea, Thailand and the Philippines. However, China and Japan were not unaffected.
September 11th: A weakened US economy and the September the 11th attacks lead to reduced US oil demand.
PDVSA strikes: As a response to strikes by oil workers at the PDVSA (state oil company) in Venezuela, OPEC members increased oil production.
Iraq War: The Iraq War and increased global oil demand, especially demand from Asia, resulted in a large increase in oil prices.
