BE – Group Assignment Group No – 15 Centre – Thane OPEC Case Study Course - IIFT EPGDIB ( Vsat) 2009 Participants :1) Dinesh Jhamnani 3) Neelesh Naik 5) Koshy John 2) Anup Nair 4) Prashant Lohade 6) Smita Meshram What is OPEC? The Organization of the Petroleum Exporting Countries (OPEC) is a permanent intergovernmental organization of 12 oil-exporting developing nations that coordinates and unifies the petroleum policies of its Member Countries. It was founded at a meeting held on 10–14 September
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The Economic Structure of OPEC For: Professor John Zink BUS 610-0703B Economics for the Global Manager By: Maria A. Journiette August 31‚ 2007 Many companies operate under a monopoly which gives them an edge or a corner on the market. In this discussion we will focus on the differences between a monopoly‚ oligopoly‚ and a cartel. We will also look at what game theory is and its affect on monopolies and cartels and the welfare affect of each of the above mentioned. A monopoly is defined
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OPEC Oil Embargo The Organization of Petroleum Exporting Countries (OPEC) was created in 1960 with the idea of unifying and protecting the interests of petroleum-producing countries. The members of this organization include: Iran‚ Iraq‚ Kuwait‚ Saudi Arabia‚ Venezuela‚ Qatar‚ Indonesia‚ Libya‚ The United Arab Emirates‚ Algeria‚ and Nigeria. Their goal was to slowly take over the function of the companies‚ at least in production‚ and then increase the amount of revenues they could retain. Despite
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OPEC – Formation and influence on the world economy Ahlam Colorado Heights University Abstract The Organization of Petroleum Exporting Countries (OPEC) ‚ is a permanent intergovernmental Organization‚ created at the Baghdad Conference on September 14 th‚ 1960‚ consisting of the world’s major oil-exporting nations. It was founded to coordinate and unify the petroleum policies of its members‚ to serve as a platform for oil producers to achieve their economic objectives by limiting supplies in the
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own benefit. The most well known cartel in existence today is OPEC‚ Organisation of Petroleum Exporting Countries. Its members are some (but not all) of the most important oil producing countries including Saudi Arabia and Mexico. Most cartels try to raise prices at the expense of consumers. The aim of this essay is to determine whether OPEC has been a successful cartel‚ this will mean I have to examine the strengths and weaknesses of OPEC which have been present throughout their existence of supplying
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Non-Cooperative Behavior of OPEC Is OPEC a classic example of an effective cartel?? What happens to world oil prices when OPEC practices cooperation?? Organization of Petrol Exporting Countries(OPEC) • Inter-governmental organization formed in 1960 by Iraq‚ Iran‚ Kuwait‚ Saudi Arabia and Venezuela • Currently has 12 members including Qatar Socialist People’s Libyan Arab Jamahiriya ‚the United Arab Emirates ‚ Algeria ‚ Nigeria ‚ and Angola . Objectives of OPEC To formulate policies in
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energy The reality is‚ that the world oil demand is forecasted to grow in 2009. “World oil demand is forecast to grow by 0.9 Millions of Barrels per Day (mb/d) in 2009‚ averaging 87.71 mb/d which is 0.1 mb/d lower than in the current year.” (OPEC‚ Monthly oil market report‚ July 2008 p. 3). This report indicates that we expect a slow down in the years after 2009. Assumptions for this oil demand forecasts are; the Worlds Gross Domestic Product (GDP) grow will slow down compared to 2008‚ we expect
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Oil Price Analysis: The Impact Of Supply & Demand By Greg McFarlane It’s easy to curse and moan when gas seems expensive. The oil companies are abusing the helpless customers who are effectively indentured to them‚ and can name their own prices thanks to a system of collusion and profiteering. Something‚ probably involving legislation‚ ought to be done. Except the truth lies elsewhere. In the long run‚ oil is about as purely elastic a commodity as there is‚ every movement on the production and consumption
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which can be found in the Appendix ("OPEC: Frequently Asked Questions" 5 Oct 2003). OPEC reported in 2001 crude oil reserves stood at 1‚074‚850 million barrels of which 79% were in OPEC countries. They also reported that the world oil demand in 2000 was at about 76 million barrels per day. Oil is a limited resource and may one day run out. According to OPEC‚ there is enough oil in the member country ’s reserves to last another 80 years‚ while non-OPEC country ’s reserves might last only 20
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recovery. Between 1997 & 1998‚ the crude price spiralled downward in response to economic crisis in Asia and increased oil production‚ OPEC failed to pre-empt such adverse impact. Prices began to recover in early 1999 to above $25 per barrel. Crude oil prices plummeted in the wake of September 11‚ 2001 terrorist attacks. Quota reduction by combined OPEC/Non OPEC produced desired effect with oil prices moving into the $25 range by March 2002. In 2003‚ The loss of production capacity during
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