Pub. date: 2007 | Online Pub. Date: September 15, 2007 | DOI: 10.4135/9781412952613 | Print ISBN: 9781412905794 | Online ISBN: 9781412952613| Publisher:SAGE Publications, Inc.About this encyclopedia
Oil provides the main source of energy for advanced industrial economies. A sudden rise in the price of oil due to, for example, speculation or to a severe disturbance in the existing relationship between supply and demand can therefore create an oil crisis. This can endanger economic and political stability throughout the global capitalist economy. In the postwar period there have been two major oil crises. The prospects for further crises cannot be discounted. The first major oil crisis of the postwar era occurred in 1973. This was caused when Arab members of the Organization of Petroleum Exporting Countries (OPEC) decided to quadruple ...