Oil as a depletable strategic commodity

Oil as a depletable strategic commodity
- Oil is a depleted (non-renewable) strategic commodity and the price of many commodities is linked to the price of oil.
- Western countries are the main consumers of OPEC oil.
Prof. Dr. Moustafa El-Abdallah Al Kafry
Oil is a strategic, depleting (non-renewable) commodity and the price of many commodities is linked to the price of oil. The market mechanism (supply and demand) determined oil prices until 1973, during which time the increasing pace of consumption of this commodity led to an increase in its prices, which is normal according to the law of the market, but this rise was met with condemnation and grumbling by the industrialized countries. The history of this commodity has gone through severe crises such as those of 1973 and 1979. Oil prices have also been exposed Global in 1998 to a major collapse where it fell until it reached -$-9 per barrel. It is known that after the collapse of prices in 1986, the theory of determining the price of oil in the world market by oil-producing and exporting countries fell, and this strategic commodity became subject to market pressures.
Western countries are the main consumers of OPEC oil, but they adopt double standards, so whenever commodity prices rise, even if it is slightly higher, we notice campaigns and media hype by Western media and great political pressure. Evidence of this is numerous, for example the media campaign that blamed OPEC countries when oil prices rose in 1999 and 2000.
The US Secretary of Energy has visited many OPEC member countries to urge them to increase the volume of production in order to reduce prices, and in the event of failure to respond to these efforts and political pressures, the industrialized countries begin to wave the use of other papers, once they wave the use of the reserve stock of the industrialized countries and once they give lessons in dealing with civilization with the peoples of the world and the accusations that this holds for the peoples of the Arab world of greed and backwardness.
In this context, we would like to point out that there are two considerations for Western countries, especially the United States of America, in the pressures they exert:
One is new: the crisis of the global economic system after the events of September 11, 2001.
The second consideration relates to the impact of rising prices on American public opinion and -dir-ectly on the American citizen, unlike the European citizen, who bears a large tax burden.
The United States consumes its entire production from points and needs to import large quantities, producing about 7.7 million barrels per day, which is estimated at 11% of global daily production while consuming approximately 25% of global production.
It is also obvious that high oil prices lead to higher prices of many consumers and strategic goods in which oil and its derivatives are an element, as well as to inflation, international economic imbalances and high interest rates.
Prof. Dr. Moustafa El-Abdallah Al Kafry
Faculty of Economics - Damascus University

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