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Today In Market Historical past, Dec. 22: OPEC Raises Oil Worth To $7 Per Barrel

Mar 18th 2018, 4:23 pm
Posted by gordonbier

Every day, Benzinga will have a look back at a notable market-associated moment that occurred on this date.

What Happened?

On this day forty four years in the past, OPEC introduced it would be unilaterally raising the value of crude oil from $5.12 per barrel to $7 per barrel.

Where Was The Market?

The S&P 500 was buying and selling at 93.54 and the Dow Jones Industrial Common was buying and selling at 818.Seventy three.

What Else Was Going on On the planet?

In 1973, Secretariat received the Triple Crown and the Watergate hearings started. Individuals have been paying a median of $175 monthly in rent.

Oil’s Huge Bounce

1973 was a historic 12 months in the historical past of the global oil market. The Organization of Arab petroleum equipment construction Exporting Nations issued an oil embargo on the U.S. beginning in October 1973 to guard U.S. If you loved this article and you would like to get petroleum equipment and supplies even more facts pertaining to petroleum equipment construction inc kindly see our own page. assist of Israel in the course of the Yom Kippur Conflict. Because of this, OPEC began hiking its posted worth of oil. In October, OPEC raised its value by 70 p.c to $5.11 per barrel. Oil ministers also started reducing production by five % per 30 days. As well as, OAPEC blocked all oil deliveries to the U.S., which it deemed to be a "hostile nation."

On Dec. 22, OPEC introduced one other value hike to $7 per barrel and stated it can be raising prices further to $eleven.65 per barrel on Jan. 1, 1974. All collectively, the hikes represented a petroleum equipment construction inc 128 p.c enhance in less than a 3-month stretch.

Because of the worth will increase, manufacturing cuts and embargo, the U.S. expertise an "oil shock" in 1973 that might have an enduring affect on U.S. power coverage.

At this time, the U.S. oil industry is suffering from a distinct problem—too a lot supply. The worth of WTI crude oil is up 6.Three petroleum equipment distributors p.c in 2018 however is still down 35.2 p.c general up to now five years.

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