The U.S. made its first export of crude oil in four decades last Thursday.The exports were banned in the mid-1970s. That ban was lifted a few weeks ago.The Arab Oil Embargo began in 1973. Arab nations who produce oil dramatically limited their shipments to the U.S. This was done to punish the U.S. over its military support for Israel.The Arab cartel later expanded the embargo to other countries, and oil prices soared worldwide. By 1974, the price of oil had risen from $3 per barrel to nearly $12 globally. U.S. prices were much higher.The embargo had many short- and long-term effects on global politics and the global economy.The skyrocketing prices led to a drop in demand for oil. Countries looked to alternative energy sources such as natural gas, nuclear energy and coal, says the Gale Encyclopedia of U.S. Economic History.Oil-producing nations outside the Middle East increased their production and relied more on domestic supply.
