Fifty years after the 1973 Arab oil embargo, the current crisis in the Middle East has the potential to disrupt global oil supplies and raise prices.
WASHINGTON — Fifty years after the 1973 Arab oil embargo, the current crisis in the Middle East has the potential to disrupt global oil supplies and push prices higher. But don’t expect a repeat of the catastrophic price hikes and long lines at the gasoline pump, experts say.Markets will remain volatile, and the conflict could push oil prices higher, “which is definitely bad news for inflation,” Fatih Birol, executive director of the Paris-based IEA, told The Associated Press.
Any damage to Iranian oil infrastructure from a military strike by Israel could send prices jumping globally. Even without that, a shutdown of the Strait of Hormuz that lies south of Iran could also shake the oil market because so much of the world’s supplies goes through the waterway. In a speech Wednesday marking the 50th anniversary of the 1973 oil embargo, Sommers said current U.S. production contrasts sharply with “America’s weakened position during the Arab oil embargo.″ He urged U.S. policymakers to heed what he called the lessons of 1973.
There are several wild cards in the energy market. One is the supply of Iranian oil. Eager to avoid a spike in gasoline prices and inflation, the U.S. has quietly tolerated some exports of Iranian oil to destinations such as China instead of going all in on sanctions aimed at Iran’s nuclear program. Venezuelan production could increase in 2024. In the next six months, however, production could ramp up by some 200,000 barrels a day, a relative drop in the ocean, according to Sofia Guidi Di Sante, senior oil market analyst at Rystad Energy.
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Long lines at gas pump unlikely, but Middle East crisis could disrupt oil supplies, raise pricesFifty years after the 1973 Arab oil embargo, the current crisis in the Middle East has the potential to disrupt global oil supplies and raise prices.
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Long lines at gas pump unlikely, but Middle East crisis could disrupt oil supplies, raise pricesFifty years after the 1973 Arab oil embargo, the current crisis in the Middle East has the potential to disrupt global oil supplies and raise prices. But don’t expect a repeat of the catastrophic price hikes and long lines at the gasoline pump, experts say.
Read more »
Long lines at gas pump unlikely, but Middle East crisis could disrupt oil supplies, raise pricesFifty years after the 1973 Arab oil embargo, the current crisis in the Middle East has the potential to disrupt global oil supplies and raise prices.
Read more »
Long lines at gas pump unlikely, but Middle East crisis could disrupt oil supplies, raise pricesFifty years after the 1973 Arab oil embargo, the current crisis in the Middle East has the potential to disrupt global oil supplies and raise prices
Read more »
Long lines at gas pump unlikely, but Middle East crisis could disrupt oil suppliesFifty years after the 1973 Arab oil embargo, the current crisis in the Middle East has the potential to disrupt global oil supplies and raise prices
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