Crude Oil Prices

Historically, crude oil or petroleum prices in the Unitedprices began to falter as member countries exceeded
States have been affected by a variety of globaltheir production limits, dropping prices to around $10 a
factors. In the beginning of the 20th century, crude oilbarrel. Prices gradually rose over the next decade, but
production began to be controlled by the USthe South-East Asian economic crisis of 1998 drove
government, with restrictions on the amount ofprices down again as demand dropped. Prices rose to
production and price to conserve this valuable energy$25 a barrel by the end of the 20th century, but a
source. Following the Second World War, demand forvariety of factors, including reduced supply and war,
petroleum could not be met through local productionmade crude oil prices spiral to $70 a barrel in 2005.
alone, and the US started importing increasingToday, trading in oil futures on the floor of the New
quantities of crude oil.York Mercantile Exchange (NYMEX) increasingly
Up until the 1972 war between Israel and Syria anddrives crude oil prices in the US. Increasing
Egypt, global crude oil prices were fairly stable atconsumption has resulted in increasing dependence on
about $3 a barrel. An oil embargo by majorimported crude oil supplies. While futures trading will
oil-producing countries in 1973 led to the first steepcontinue to determine crude oil prices in the
increase in crude oil prices, to $12 a barrel. Followingforeseeable future, oil conservation and the
the Iran revolution of 1979 and the Iran-Iraq war, crudedevelopment of alternative and renewable energy
oil prices rose to $35 a barrel by 1981. However, bysources are both essential to ensure a stable energy
1986, the OPEC cartel's control over global crude oilsupply and price in the longer term.