Could 1979’s Oil Market Chaos Be Repeated?

  • 📰 Forbes
  • ⏱ Reading Time:
  • 19 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 11%
  • Publisher: 53%

Business News News

Business Business Latest News,Business Business Headlines

Banning Russia from the SWIFT system could create chaos in oil markets, even if supplies are rerouted to other buyers.

But few recall that the industry structure also underwent a revolution at that time. Although most OPEC countries had nationalized the upstream operations in their countries, most were still selling the bulk of their oil to the previous lessees, primarily the Seven Sisters. Not only did those companies lose their Iranian supply in 1979, but much of the oil they were lifting from exporting nations was cut off.

But this meant that those companies that lost oil supply in this manner had to seek new supplies, reduce sales to third parties—especially Japanese oil companies—who were then forced to seek their own new supplies. All while oil consuming governments urged each other not to pursue scarce spot supplies, but encouraging their own companies to find whatever they could.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 394. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

OPEC+ trims 2022 oil market surplus forecast in latest dataOPEC+ revised down its forecast for an oil market surplus this year by about 200,000 barrels per day (bpd) to 1.1 million bpd, according to a base scenario in a technical committee report seen by Reuters on Sunday. Rate my naked photos)😘😘😘
Source: Reuters - 🏆 2. / 97 Read more »