What were the reason for the prices to be so high in those times?
2006-08-11 00:44:35 · 4 answers · asked by robin 3 in News & Events ➔ Other - News & Events
OPEC Oil Embargo. The Oil Producing Exporting Countries (OPEC) decided to drastically cut production (oil embargo) because they were not happy with United States policy (and wanted more money). In addition to the shortage, there was fear that OPEC would entirely cut-off supply. Long lines at gas stations, and shortages, caused prices to increse.
As you might expect, the sales of gas-guzzling cars dropped (dramatically), and the sale of small, fuel efficient cars sky rocketed. This was also the event that started to lead to the decline of the American Auto Industry, because Toyota, Honda and other imports were ready to meet the demand for quality small cars, the US automakers were not. When the domestic automakers finally did put small cars on the market, the quality control was simply not there. Honda, Toyota (etc.) got a toe hold, and increased their share for their ability to build quality cars and react quickly to changing market conditions.
2006-08-11 00:55:00 · answer #1 · answered by robert_dod 6 · 1⤊ 0⤋
Besides all the reasons others have provided the war between Iran and Iraq was also a major fact. I want to know why prices of petroleum are even more higher now.
2006-08-11 08:09:02 · answer #2 · answered by dua 4 · 1⤊ 0⤋
Prices peaked during the Iraq/Iran war which threatened supplies from two major oil producers.
2006-08-11 07:59:41 · answer #3 · answered by Robert A 5 · 1⤊ 0⤋
OPEC decided to screw awround with the rest of the wordl by limiting their oil supply
2006-08-11 07:51:45 · answer #4 · answered by GEN Gamer 4 · 1⤊ 0⤋