1960's Oil Industry

Oil is a key factor in commercial production, transportation, industrial manufacturing, and much more. It is the single most important source of primary energy in the world. With global exports averaging $1.8 trillion annually, oil is the most traded commodity in the world. The oil industry is so substantial that changes to its market’s conditions have direct and indirect effects on the global economy.
In the early 1960’s the price of crude oil was between $2.50 and $3.00 per barrel. The majority of oil produced came from many middle eastern countries, the US, Russia and Venezuela. Supply was high and so was the quantity demanded, making the oil market stable. In 1960, Iran, Iraq, Kuwait, Saudi Arabia and Venezuela came together to establish

The price of oil ranged form $15.00 a barrel to $22.00. From 1990 until 1997, world oil consumption increased 6.2 million barrels per day. This boom lead to a price recovery, until OPEC increased production from 2.5 million barrels per day to nearly 27.5 million per day. This caused prices to slowly drop until the turn of the century. In the early 2000’s, Russia and other non-OPEC producers put downward pressure on the price of oil by steadily increasing production. After the attacks on the World Trade Center, late in 2001, the demand for OPEC oil decreased, which lead to decreased production by both OPEC and non-OPEC producers. This caused prices to increase to around $25 per barrel in 2002. At the time, oversupply was no longer an issue. With an improving US economy, in 2003 demand was increasing and Asian demand for crude oil was rapidly growing at a record setting pace. But in 2005, the US economy began to weaken, which, among other factors, lead to prices in excess of $40 to $50 per barrel. With the great recession of 2008, oil prices continued to soar. In 2009, as the worlds’ economy began to recover, crude oil prices rose due to increased demand from Asian countries. The price of oil was now up to $60 a barrel. In 2011, protests in the Middle East and North Africa drove prices up even more. Prices spiked to $100 a barrel due to the 2011 Libyan Civil War. Ever since then, prices have fluctuated between $90 and $120 per barrel. Currently, in 2014, the price of oil is around $95.00 per