What were the effects of the Arab OPEC oil embargo on the US?

The embargo sent gas prices through the roof. Between 1973-1974, prices more than quadrupled. The embargo contributed to stagflation. In response to the oil crisis, the United States took steps to become increasingly energy independent.

Does the United States depend on other countries for oil?

America is one of the world’s largest oil producers, and close to 40 percent of U.S. oil needs are met at home. Most of the imports currently come from five countries: Canada, Saudi Arabia, Mexico, Venezuela and Nigeria.

What ended the Arab oil embargo?

Arab oil embargo, temporary cessation of oil shipments from the Middle East to the United States, the Netherlands, Portugal, Rhodesia, and South Africa, imposed by oil-producing Arab countries in October 1973 in retaliation for support of Israel during the Yom Kippur War; the embargo on the United States was lifted in …

What were some of the long term consequences of the oil embargo of 1973?

In purely economic terms, the embargo and its aftermath produced broad macro impacts. The price shock of 1973 is reported to have shrunk the U.S. economy by approximately 2.5 percent, increased unemployment and inflation, and spun the economy into a severe and extended recession (1973–1975).

How much oil does Saudi Arabia have?

Oil Reserves in Saudi Arabia Saudi Arabia holds 266,578,000,000 barrels of proven oil reserves as of 2016, ranking 2nd in the world and accounting for about 16.2\% of the world’s total oil reserves of 1,650,585,140,000 barrels.

What caused the oapec countries to stop exporting oil to the United States?

During the 1973 Arab-Israeli War, Arab members of the Organization of Petroleum Exporting Countries (OPEC) imposed an embargo against the United States in retaliation for the U.S. decision to re-supply the Israeli military and to gain leverage in the post-war peace negotiations.

How did the oil embargo affect the United States?

The embargo caused the United States and western European countries to reassess their dependence upon Middle Eastern oil. It also led to far-reaching changes in domestic energy policy, including increased domestic oil production in the United States and a greater emphasis on improving energy efficiency.

Why Arab countries use the embargo?