During this week, the European Union’s (EU) embargo on Iranian oil came into full effect. This unprecedented historical move bears many signs indicating the importance of changes that have affected global energy markets in recent years.
Over the past decades, oil producing countries were the ones that determined the rules of the game in oil markets, as exporting countries have been using oil as a tool to apply pressure on consumers, especially during the Arab-Israeli war in 1973 during which time Arabs had halted oil exports leading to prices jumping five times.
Four decades after the 1973 war, the situation has changed and oil consuming countries are now pressurising oil exporting countries after they recently reducing their dependence on oil, especially from the Gulf countries by the developing alternative sources of energy. The countries to do so include the Americas, Brazil and Venezuela and the US.
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