Has OPEC been a Successful Cartel?

A cartel is an organisation of producers grouped together for their accept benefit. The close well known cartel in human beings at present is OPEC, Organisation of Petroleum Exporting Countries. Its members are some ( just now non all) of the most serious inunct producing countries including Saudi Arabia and Mexico. some cartels settle to raise costs at the expense of consumers. The aim of this audition is to particularise whether OPEC has been a successful cartel, this will mean I pee-pee to examine the strengths and weaknesses of OPEC which have been present throughout their universe of furnish rock oil. This should allow me to make an appropriate sound judgment on whether OPEC has been a successful Cartel. The level of oil prices suffer give me important information on how well OPEC has managed to image prices: Year         Crude oil prices, $ per barrel 1970         3 1975         13 1980         35 1985         27 1990         17 2000         14 The brief history of oil prices show that oil was meretricious in the fifties and 60s. This was due to supply growing express than prerequisite. The early 1970s axiom a reversal of this trend, as necessary increased speedy than supply. This was mainly due to the world prudence booming. Source: satisfactory from BP statistical review In November 1973, politics in the ticker eastside was to have a great effect on oil prices. With an existing tight market, the result was am burst in the price of oil. The war was soon over but its economical downturn effect was not lost on OPEC. OPEC, whose members at the time supplied over 60% of world demand for oil, organise a system of quotas amongst themselves, fixing limits on how a great deal apiece member could produce. By slightly cutting congest on pre-1973 production levels, they were able to increase the average price of... If you urgency to get ! a full essay, order it on our website: OrderCustomPaper.com

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