Essay about OPEC Presentation

1377 WordsFeb 15, 20156 Pages
Overview of OPEC Is a permanent, intergovernmental Organization, created at the Baghdad Conference on September, 1960. Founder Members: Later joined Members •Iran •Iraq •Kuwait •Saudi Arabia •Venezuela •Qatar (1961) •Indonesia (1962) – suspended membership 01/2009 •Libya (1962) •United Arab Emirates (1967) •Algeria (1969) •Nigeria (1971) •Ecuador (1973) – suspended membership 1992-2007 •Angola (2007) •Gabon (1975–1994) Objectives of Opec • OPEC's objective is to co-ordinate and unify petroleum policies among Member Countries in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry. •…show more content…
In response OPEC introducing a group production ceiling divided among Member Countries and a Reference Basket for pricing, as well as dialogue and cooperation between non-OPEC countries State-owned oil companies in emerging-market economies experienced a boom on this years by providing the oil gap cause for the OPEC embargo to those countries in need of the hydrocarbon. The 1990’s and Nowadays 1990’s was marked by excessive volatility and general price weakness dominated the decade, lead by the Middle East disputes between Iraq, Iran and Kuwait However, a solid recovery followed by a more integrated oil market, which was adjusting to greater globalization, communications revolution and other high-tech trends. Ten years after, another war took place between USA and Iraq which prompted a sharp rise in oil prices to levels far higher than those targeted by OPEC themselves. This increase was boosted even more as OPEC members spoke openly about converting their cash reserves to the euro and away from the US dollar and by the disputes between OPEC members concerning the production quotas . OPEC Role in Economics OPEC is a swing producer, and its decisions have had considerable influence on international oil prices. Although they called for stable and just commodity prices, an international food and agriculture program, technology transfer, and the democratization of the economic system the evidence suggests that OPEC did act as a cartel when it adopted output
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