OPEC.docx - Running head OPEC AND THE GLOBAL MARKET 1 OPEC and the Global Market Student’s Name School Affiliation OPEC AND THE GLOBAL MARKET 2 OPEC

OPEC.docx - Running head OPEC AND THE GLOBAL MARKET 1 OPEC...

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Running head: OPEC AND THE GLOBAL MARKET 1 OPEC and the Global Market Student’s Name School Affiliation
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OPEC AND THE GLOBAL MARKET 2 OPEC and the Global Market Oil is one of the most valued mineral on the planet due to the significant role it plays in the development of the economy of the member states. The mineral is used as a factor of production in nearly all industries confirming that its absence may halt the operations of the industrial sector. Oil has a wide domestic usage with most households relying on it to light homes and propel domestic machines. Few countries are known to produce oil calling for the need to have a body to regulate its production and sale as this would help restrict monopoly powers of the producing nations. OPEC is an organization formed to regulate the oil supply in the global market. The paper aims to discuss the mandate of OPEC and the dynamics it has faced with a significant focus on Saudi Arabia, one of the oil producing countries. Organization of the Petroleum Exporting Countries (OPEC) This is an organization of the oil producing countries formed to ensure that oil producing countries adhere to the policies pertaining to the production and supply of oil in the global market. The organization is mandated to stabilize oil prices by ensuring that the producing countries do not sell their products at a high price as well as shielding them from incurring losses in their supplies (Chen, 2019). Without the regulations imposed by OPEC, the oil producing countries would supply excess oil in the global market with the aim of maximizing states’ revenue. The result is that the prices would be driven to lower levels, a factor that would
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  • Spring '17
  • JohnKeegan

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