OPEC: the cartel still stands
High prices set by the Organization of Petroleum Exporting Countries (OPEC) continue to affect world economies, but the cartel is felt to be strong enough to keep prices relatively stable. A strain on OPEC unity developed when Saudi Arabia threatened to force lower prices and market disruptions by increasing its production if the other nations insisted on a 10% price increase. After several months of negotiating within the cartel, stockpiling by the oil companies, and increased production by Saudi Arabia, the result was a series of shifts in supply sources, a decision by nine of the eleven OPEC nations to settle for a lower price increase, a solid cartel, and a successful effort by President Perez of Venezuela to eliminate two-tier pricing. Saudi Arabia's goal was to establish leadership in the cartel, preserve OPEC, and maintain the world economy and its investments abroad.
- OSTI ID:
- 7099469
- Journal Information:
- Energy (Stamford, Conn.); (United States), Journal Name: Energy (Stamford, Conn.); (United States) Vol. Special issue; ISSN ENGYD
- Country of Publication:
- United States
- Language:
- English
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294002* -- Energy Planning & Policy-- Petroleum
ASIA
CARTELS
CHARGES
DEMAND FACTORS
ECONOMIC POLICY
ENERGY SOURCES
FOSSIL FUELS
FUELS
INTERNATIONAL ORGANIZATIONS
INVESTMENT
MARKET
OPEC
PETROLEUM
PRODUCTION
SAUDI ARABIA
SUPPLY AND DEMAND