Egypt is not a mem-
ber of the Organization of Petroleum Exporting Countries
(OPEC), the 12-nation member cartel that has the biggest role
in deciding global production and pricing of oil. But like the
OPEC members, Egypt benefits when the price of oil is reason-
ably high and suffers when the price declines. Egypt had an
especially bad budget situation in the late 1980s, when the price
of oil sank to as low as $9 per barrel. It was doing well in 2000,
when the price was around $30 per barrel. But then the terror-
ist attacks on the United States sent many economies around
the world into recession. Industrial production slowed down,
meaning less oil was needed. So the price of oil fell, and Egypt
saw less revenue. By 2006, with oil prices exceeding $60 a bar-
rel, Egypt’s economy was once again benefiting greatly from its
petroleum resources.
ber of the Organization of Petroleum Exporting Countries
(OPEC), the 12-nation member cartel that has the biggest role
in deciding global production and pricing of oil. But like the
OPEC members, Egypt benefits when the price of oil is reason-
ably high and suffers when the price declines. Egypt had an
especially bad budget situation in the late 1980s, when the price
of oil sank to as low as $9 per barrel. It was doing well in 2000,
when the price was around $30 per barrel. But then the terror-
ist attacks on the United States sent many economies around
the world into recession. Industrial production slowed down,
meaning less oil was needed. So the price of oil fell, and Egypt
saw less revenue. By 2006, with oil prices exceeding $60 a bar-
rel, Egypt’s economy was once again benefiting greatly from its
petroleum resources.
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