Historical Event-The 1970's oil crisis

On October 5, 1973, a war began, called the Yom Kippur war. It started with an attack on Israel, from Syria and Egypt. When the United States and other western countries showed support for Israel, the Arab oil exporting nations placed embargos on these countries. They cut production by five million barrels a day despite other nations increased their production. A net loss of four million barrels a day occurred throughout March of 1974. So OPEC raised crude oil prices from their 1972 level of $3 a barrel to $12 a barrel in 1974.
The huge price increase was due not only to reduced supply, but to U.S energy policies that placed price controls on domestically produced oil. It caused consumers to pay 50% more for imported oil. Americans were forced to wait in long lines or even make appointments to buy gasoline. In an effort to conserve energy, president Nixon tried to reduce the speed limit to 50 miles per hour. Around 1974 the embargo was lifted after the U.S helped establish a ceasefire in the October war. The crisis showed the world that the economic powers were countries with oil wells.