A supply-demand model for OPEC oil-pricing policies

Thesis/Dissertation · Fri Jan 01 04:00:00 EST 1988

OSTI ID:5316091

Heiat, N

OPEC and its pricing policies have been subjected to constant international attention as well as criticism since 1973. Consumers find OPEC behavior irrational, while OPEC tries to justify its policies as rational and in accordance with the realities of the international oil market. The focus of this study is to contribute toward an analytical and empirical work on OPEC pricing behavior, and highlight the various factors believed to affect the future oil policies of OPEC member countries. After a survey of literature on the theoretical framework of world oil models in general, and OPEC models in particular, a linear econometric model for pricing OPEC oil is formulated which is a supply-demand equilibrium model comprising of supply, demand, and inflation-rate functions. Estimation of the behavioral equations are carried out by Ordinary and Two-Stage Least Square estimators. Econometric results from the estimation and simulation of the model seem to indicate that OPEC's pricing behavior is market-responsive and may best be explained by employing the theoretical framework of market-equilibrium condition.

• Research Organization: Portland State Univ., OR (USA)
• OSTI ID: 5316091
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
294002* -- Energy Planning & Policy-- Petroleum
ECONOMETRICS
ECONOMICS
ENERGY SOURCES
FOSSIL FUELS
FUELS
FUNCTIONAL MODELS
GLOBAL ASPECTS
INFLATION
INTERNATIONAL ORGANIZATIONS
MARKET
OIL-EXPORTING COUNTRIES
OPEC
PETROLEUM
PRICES
SUPPLY AND DEMAND