The Revenue Effect of Oil Embargoes

Regarding the 1967 oil embargo, Yergin then goes on to say

By July 1967, a mere month after the Six-Day War, it was clear that the “Arab oil weapon” and the “selective embargo” were a failure; supplies were being redistributed to where they were needed. … the formal emergency machinery for joint operations and antitrust exemptions never needed to be implemented. The international companies themselves, working individually, had managed to handle the situation.

The biggest losers turned out to be the countries that instituted the embargoes. They were giving up substantial revenues to no obvious effect.

Thus endeth the economics lesson for Sunday evening.