Supply instability and oil market behavior

This paper analyzes the disruption in world oil markets which was triggered by the 1978-79 Iranian revolution. The resultant price rises are explored in the context of the behavior of the spot market and key OPEC countries. In particular, the economic and political roles of excess oil supply in the Persian Gulf nations are discussed. Conclusions for the likely future are presented, along with the implications for United States policy.NSF grant no. DAR 78-19044