1973 OPEC Energy Crisis Flashcards
what does OPEC stand for
Organisation of Petroleum Exporting Countries
what major global event triggered the 1973 oil crisis
the Yom Kippur/October war between Arab states and Israel
why did OPEC cut oil supplies in 1973
in retaliation for western support of Israel during the Yom Kippur War
how did OPEC impact oil prices between 1973-1980
increased the price of oil from $2 to $35 per barrel
what effect did the oil crisis have on western economies
prices rose sharply inflation soared and many industries were badly affected
what was the impact of the oil crisis on Britain’s balance of payments
the deficit rose to £1 billion
what was the inflation rate in Britain in 1975
rose from 16% to 25%
how did the oil crisis affect the value of the pound
it fell from $2.00 to $1.57
what action did the bank of england take in response to inflation
raised interests rates to 15%
what happened to unemployment between 1974 and 1976
it more than doubled
what was the trade union response to the crisis
they led strike actions in response to inflation and unemployment
which govt suffered most from the oil crisis long term effects
