Financial Wealth Ideas

Despite all the measures taken in 1978, broke the second oil crisis. The main reasons were the revolution in Iran and its political impact, which resulted in an agreement at Camp David between Israel and Egypt. By 1981, the price of oil reached $ 40 a barrel. The weak OPEC is fully manifested in the early 1980's, when a full-scale development of new oil fields outside OPEC, large-scale introduction of energy-saving technologies, and economic stagnation in the demand for imported oil in industrialized countries fell sharply, while prices fell almost by half. After that the oil market within 5 years, there was calm and smooth fall in oil prices. But when in December 1985, OPEC has increased oil production - up to 18 million barrels per day, started this price war, provoked by Saudi Arabia. The result was that within a few months, crude oil dropped in price more than doubled - from 27 to 12 dollars per barrel. The fourth oil crisis erupted in 1990. August 2, Iraq attacked Kuwait, the price jumped from 19 dollars per barrel in July to 36 in October. But then oil dropped in price to its previous level before the start of Operation Desert Storm, which ended the military defeat of Iraq and the economic blockade against the country. Despite the constant overproduction of oil in most OPEC countries and the increased competition from other oil-producing countries, oil prices during 1990 remained relatively stable compared with those fluctuations, they have experienced in the 1980's. However, in late 1997 began the fall in oil prices, while in 1998 the world market of oil reached an unprecedented crisis. Analysts and experts are a lot of different reasons for this sharp drop in oil prices. Many are inclined to place all the blame on OPEC decision, taken in late November 1997 in Jakarta (Indonesia), raising the ceiling on oil production, leaving the markets were allegedly released additional quantities of oil, and was lowering its prices. The efforts undertaken by member countries and non-members of OPEC in 1998, certainly played a crucial role in preventing the further collapse of world oil market. Do not be taken up, and the price of oil, as estimated by some experts, could drop to 6-7 dollars a barrel.