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The five Founding Members were later joined by nine other Members: Qatar ; Indonesia which suspended its membership from January ; Libya ; United Arab Emirates ; Algeria ; Nigeria ; Ecuador suspended its membership from December October ; Angola and Gabon The objective of the OPEC is to coordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; to ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consuming nations; a steady income to producers and a fair return on capital to those investing in the petroleum industry.
One of the principal goals of OPEC is to determine the best means for safeguarding the interests of its members, individually and collectively. OPEC also pursues ways and means to eliminate harmful and unnecessary fluctuations in international oil prices.
It gives due regard at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries. The ability of OPEC to determine production and prices, and thus influence the market, has been widely criticized.
Arab members of OPEC alarmed the developed world when they used the "oil weapon" during the Yom Kippur War by implementing oil embargoes and initiating the oil crisis. However, the ability of OPEC to control the price of oil has diminished in recent times due to the discovery and development of large oil reserves in Alaska, the North Sea, Canada, the Gulf of Mexico, the opening up of Russia, and market modernization.
Still, the OPEC nations account for two-thirds of the world's oil reserves and one-thirds of the world's oil production, which gives them considerable control over the global market.
The Iranian war in caused the second oil crisis, when prices peaked, before beginning a dramatic decline, which culminated in a collapse in —the third oil pricing crisis.
A fourth pricing crisis was averted at the beginning of s, on the outbreak of hostilities in the Middle East, when a sudden steep rise in prices on panic-stricken markets was moderated by output increases by OPEC Members. Prices then remained relatively stable untilwhen there was a collapse, in the wake of the economic downturn in South-East Asia.
Currently, the ongoing international climate change negotiations threaten heavy decreases in future oil demand. The Ministers of energy and hydrocarbon affairs from OPEC nations meet twice a year to review the status of the international oil market and the forecasts for the future in order to agree upon appropriate actions which will promote stability in the oil market.
The Member Countries also hold other meetings at various levels of interest, including meetings of petroleum and economic experts, country representatives and special purpose bodies such as committees to address environmental affairs.
The publication is part of the Organization's commitment to market stability and a means to highlight and further understand many of the possible future challenges and opportunities that lie ahead for the oil industry.
The publication is also a channel to encourage dialogue, cooperation and transparency between OPEC and others within the industry.
The World Oil Outlook focused on "Oil supply and demand outlook to " and "Oil downstream outlook to ". The OPEC Fund, originally intended to be a temporary facility, became a fully fledged, permanent international development agency in May However, OFID's work goes beyond simply dispensing aid.
One of its central aims is to advance 'South-South' solidarity by promoting cooperation in many spheres among countries of the developing world. In this regard, OFID has been closely associated with two multilateral institutions of great relevance in the developing world: The OFID methods of funding include public sector loans for development projects and programmes, balance of payments support and debt relief under the Heavily Indebted Poor Countries HIPC Initiative; trade financing; support to private enterprises ; grants for technical assistance, food aid, research and humanitarian relief work; and contributing to the resources of other development organizations whose activities benefit developing countries.
OFID's resources consist of voluntary contributions made by OPEC member countries and the accumulated reserves derived from its various operations. It is because the economic needs of the OPEC member states are often at variance.
Various members demand for reductions in production quotas to increase the price of oil and thus their own revenues. This stance creates conflict with Saudi Arabia, which has a stated long-term strategy of being a partner with the world's economic powers to ensure a steady flow of oil that would support economic expansion.
Part of the basis for this policy is the Saudi concern that expensive oil or oil of uncertain supply will drive developed nations to conserve and develop alternative fuels.
The changes in the value of the dollar against other world currencies also affect OPEC's decisions on how much oil to produce, as the worldwide oil sales are mostly denominated in US dollars. Member states like Iran, Iraq and Venezuela have at different times experimented with shifting their oil price form the dollar to the Euro, but have subsequently stuck to the US dollar.Organisation of the Petroleum Exporting Countries (OPEC) is an international cartel of oil producing states (Princeton).
It was founded in by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela with an objective to co-ordinate and unify petroleum policies among Member Countries. International Business.
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