Trade with the oil-exporting countries
Following the meteoric rise in oil prices, there has been a phenomenal increase in the value of trade between the U.S. and the 13 members of OPEC. The United States runs a sizable deficit in its trade with these countries, especially Nigeria and Saudia Arabia. This deficit is partly offset by a trade surplus with the rest of the world. Although the U.S. incurs a very large deficit in its total trade with OPEC, the Nation does have appreciable surpluses in some categories of trade, especially in machinery and transport equipment. Contrary to popular opinion, trade with OPEC in food and military goods is relatively small. It is estimated that the members of OPEC began investing a larger share of their surplus funds in longer-term assets after 1974. Partly as a result, widespread fears that the money markets would be disrupted by the OPEC surpluses have not materialized.
- Research Organization:
- Federal Reserve Bank of Boston
- OSTI ID:
- 5355134
- Journal Information:
- N.Engl. Econ. Rev.; (United States), Journal Name: N.Engl. Econ. Rev.; (United States); ISSN NWEEA
- Country of Publication:
- United States
- Language:
- English
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COMMODITIES
ECONOMIC POLICY
ECONOMICS
GROSS NATIONAL PRODUCT
INTERNATIONAL ORGANIZATIONS
MARKET
MONOPOLIES
NORTH AMERICA
OPEC
PETROLEUM PRODUCTS
TRADE
USA