The Impact of the Gulf Crisis on World Oil and OPEC
| Date | 01 June 1994 |
| DOI | 10.1177/002070209404900203 |
| Author | Robert Mabro |
| Published date | 01 June 1994 |
| Subject Matter | Article |
ROBERT
MABRO
The impact
of
the
Gulf
crisis
on
world
oil
and
OPEC
OIL
AT
THE
ORIGINS
OF
THE
CRISIS
The
Gulf
crisis
which
broke
out
in
August
1990
with
the
inva-
sion
of
Kuwait
by
Iraq
was
to
a
large
extent
a
conflict
about
oil.
The
military
intervention
led
by
the
United
States
and
a
group
of
allies,
acting
with
a
United
Nations
mandate
to
liberate
Kuwait,
was
also
largely
motivated
by
concerns
about
the
possi-
bility
of
long-term
control
of
oil
supplies
by
an
unfriendly
and
aggressive
power
-
Iraq.
Equally,
the
issues
which
gave
Iraq
a
pretext
for
its
invasion
of
Kuwait
related
to
the
ownership
of
oil
fields
and
to oil
prices
and
oil
revenues,
although
Iraq did,
of
course,
have
broader
political
and regional
objectives.
Saddam
Hussein
wanted
to
establish
himself
as
leader
of
the
Arab
world.
He
believed
that
this
position
was
owed
to
him
because
of
the
sacrifices
made
by
Iraq
in
the long
war
against
Iran
(dubbed
the
Arabs'
historical
enemy)
and
because
of
the
military
might
of
his
country.
But
such
ambitions
could
not
be fulfilled
without
financial
resources,
and
these
were
not
available.
Worse,
the
economic
and
financial
situation
facing
Iraq
after
the
war
was
extremely
difficult.
Never
mind
the
lack
of
resources
for
the pursuit
of
regional
power
and
leadership;
resources
were
badly
needed
just
for
survival.
Moreover,
Iraq
was
burdened
with
a
huge for-
eign
debt.
Although
the
Gulf
countries,
the
major
debtors,
were
Director,
Oxford
Institute
for
Energy
Studies,
and
University
Lecturer
and
Fellow
of
St
Antony's
College,
Oxford
University;
author,
most
recently,
of
Oil
Markets
and
Prices:
The
Brent
Market
and
the
Formation
of
World
Oil
Prices
(with
Paul
Horsnell).
Internalional
Journal
XLIX
SPRING
1994
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