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Jan 4, 2023 · The Organization of Petroleum Exporting Countries (OPEC) arose in response to the role of multinational oil companies as the price makers in the international crude market. In an effort to develop a stronger negotiating position, five countries—Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela—founded OPEC in September 1960, with the mission ...
- OPEC
Angola leaves OPEC after 16 years to leverage its oil...
- Saudi Arabia
The Journal of Petroleum Technology, the Society of...
- OPEC
- Oil Price and Supply
- OPEC+ Disagreed on Pandemic Production Move
- OPEC+ Cuts Production on Recession Concerns
- The Bottom Line
As a cartel, the OPEC+ member countries collectively agree on how much oil to produce, which directly affects the ready supply of crude oil in the global market at any given time. OPEC+ subsequently exerts considerable influence over the global market price of oil and, understandably, tends to keep it relatively high to maximize profitability. If O...
In March 2020, Saudi Arabia, an original member of OPEC, the largest exporterof OPEC, and an extremely influential force in the global oil market, and Russia, the second-leading exporter and, arguably, the second most important player in the recently formed OPEC+, failed to reach an agreement about cutting production to stabilize the price of oil. ...
As pandemic restrictions eased around the world, oil prices began to recover along with demand. From lows of less than $17 per barrel in the spring of 2020, WTI prices recovered to more than $80 by October 2021. When Russia invaded Ukraine in February 2022, oil prices climbed even higher, with WTI prices jumping over $115 per barrel by June. As Rus...
The Organization of the Petroleum Exporting Countries (OPEC) and the broader coalition known as OPEC+ leverage their countries’ dominant market position to exert a strong influence over global oil prices. However, divergent long-term goals for member countries and increased production from countries outside the group may limit the capacity of OPEC+...
- Michael Bromberg
May 24, 2024 · Because of its large market share, the decisions OPEC makes can affect global oil prices. Its members meet regularly to decide how much oil to sell on global markets. As a result, when they lower ...
Jul 26, 2024 · The organization also maintains the so-called OPEC Fund. The OPEC Fund is the social responsibility program of the organization aimed at partnering with developing countries and the international development community to support sustainable social and economic advancement in low-income and middle-income communities around the world.
Nov 11, 2022 · Another 10 major oil producing countries including Russia have aligned with the group to form an alliance known as OPEC+. OPEC produces about 40% of the world’s crude oil and its members’ exports make up around 60% of global petroleum trade. The group aims to regulate global oil prices by coordinating on reductions or increases in production.
May 7, 2021 · OPEC's market power stems from its ability to adjust production and manage a spare capacity cushion that can be utilised at any given point in time to offset sudden and abrupt disruptions in either the supply or demand side of the global oil market (Fattouh and Mabro, 2006). Spare capacity played a key role for the functioning and the evolution of the oil market long before OPEC.
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OPEC requires a level of price that guarantees fair returns to investors and the owners of the valuable natural resources, while the consumers need a price that can be comfortably accommodated to ensure continued robust economic growth. However, I must make one thing clear here. OPEC does not set the price of oil.
