2006 North Korean missile test in the context of United States Seventh Fleet

⭐ Core Definition: 2006 North Korean missile test

Two rounds of North Korean missile tests were conducted on July 5, 2006. The Democratic People's Republic of Korea (DPRK or North Korea) reportedly fired at least seven separate missiles. These included one long-range Taepodong-2 missile and short-range Scud derived missiles including the enlarged Nodong missile. The Taepodong-2 was estimated by United States intelligence agencies as having a potential range reaching as far as Alaska, although this missile failed after about 42 seconds of flight.

North Korea made its first public acknowledgement of the tests on July 6, through its foreign ministry, describing them as "successful" and part of "regular military drills to strengthen self-defense", insisting that it had the legal right to do so. The country warned of "stronger physical actions" if it were put under pressure by the international community. On July 8, CNN reported that the U.S. had deployed the USS Mustin, a guided missile destroyer, to the Japanese port of Yokosuka, home of the U.S. Navy's Seventh Fleet. A spokeswoman said that the deployment was not related to the test-firings, and it had been previously planned.

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2006 North Korean missile test in the context of 2000s energy crisis

From the mid-1980s to September 2003, the inflation-adjusted price of a barrel of crude oil on NYMEX was generally under US$25/barrel in 2008 dollars. During 2003, the price rose above $30, reached $60 by 11 August 2005, and peaked at $147.30 in July 2008. Commentators attributed these price increases to multiple factors, including Middle East tension, soaring demand from China, the falling value of the U.S. dollar, reports showing a decline in petroleum reserves, worries over peak oil, and financial speculation.

For a time, geopolitical events and natural disasters had strong short-term effects on oil prices, such as North Korean missile tests, the 2006 conflict between Israel and Lebanon, worries over Iranian nuclear plans in 2006, Hurricane Katrina, and various other factors. By 2008, such pressures appeared to have an insignificant impact on oil prices given the onset of the global recession. The recession caused demand for energy to shrink in late 2008, with oil prices collapsing from the July 2008 high of $147 to a December 2008 low of $32. However, it has been disputed that the laws of supply and demand of oil could have been responsible for an almost 80% drop in the oil price within a six-month period. Oil prices stabilized by August 2009 and generally remained in a broad trading range between $70 and $120 through November 2014, before returning to 2003 pre-crisis levels by early 2016, as US production increased dramatically. The United States went on to become the largest oil producer by 2018.

View the full Wikipedia page for 2000s energy crisis

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