Price of oil and conflict in OPEC
The price-setting behavior of the oil-exporting nations is influenced by the various elasticities of demand for and supply of oil, and the long-run optimal price trajectory is also influenced by the rate of interest and reserves. A study of the magnitude of the short-run price elasticity of the demand for oil supplied by the OPEC core (Saudi Arabia, Kuwait, the United Arab Emirates, and Qatar) and of OPEC as a group suggests that it is more efficient to pin down the price elasticity of the world's demand for oil than to determine the other elasticities involved. The results point up the difference in interests among OPEC nations that can lead to serious disagreements. This explains the recent problem of the core producers favoring an unchanged or reduced price for oil while the fringe producers favor a higher price. 12 references, 2 tables.
- Research Organization:
- Gulf Oil Corp., Pittsburgh, PA
- OSTI ID:
- 6940085
- Journal Information:
- Energy J.; (United States), Journal Name: Energy J.; (United States) Vol. 5:2; ISSN ENJOD
- Country of Publication:
- United States
- Language:
- English
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020700* -- Petroleum-- Economics
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COOPERATION
ECONOMIC ANALYSIS
ECONOMIC ELASTICITY
ECONOMIC POLICY
ECONOMICS
ENERGY SOURCES
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
INTERNATIONAL COOPERATION
INTERNATIONAL ORGANIZATIONS
OIL-EXPORTING COUNTRIES
OPEC
PETROLEUM
PRICES
SUPPLY AND DEMAND