OPEC dynamics in the Global market Student’s Name Professor’s Name Course Name Date of Submission Organization of the Petroleum Exporting Countries (OPEC) is one of the largest oil producing cartels having been formed in the year 1960 with the goal of unifying the petroleum policies among the member states and enhancing the stability of petroleum prices across the oil markets (Carbaugh 2017). Additionally it was to ensure that there is a regular supply of the petroleum commodity thereby offering an opportunity to attract investment in the petroleum industry. The organization has faced a variety of challenges that have impacted on its revenues and control of the market share. For instance there have been several fluctuations in the market prices that have consequently affected the ability of the cartel to ensure that they control the market prices across the consumer markets. As such the OPEC has faced a variety of their supplies. Again the introduction of alternative means of energy sources such as solar wind and water power has impacted on the demand for oil products (Carbaugh 2017). As such the dominance of OPEC has hugely reduced owing to the diversification of energy sources together with increased environmental conservation needs. References Carbaugh R. (2017). International Economics. Fifteenth Edition. Cengage Learning US. Creti A. Ftiti Z. & Guesmi K. (2014). Oil price and financial markets in the main OPEC countries. Energy Studies Review 20(3). D'Ecclesia R. L. Magrini E. Montalbano P. & Triulzi U. (2014). Understanding recent oil price dynamics: A novel empirical approach. Energy Economics 46 S11-S17. Vivoda V. (2009). Resource nationalism bargaining and international oil companies: challenges and change in the new millennium. New Political Economy 14(4) 517-534. Wirl F. (2015). Output adjusting cartels facing dynamic convex demand under uncertainty: The case of OPEC. Economic Modelling 44 307-316. [...]
In your International Economics textbook, Carbaugh (2017, Chapter 7) provided a historical account of OPEC and its power in controlling the global petroleum supply. In a critical essay, investigate the dynamics OPEC has faced in the global market in the last ten years. You may select a member country and analyze the effects from the perspective of that jurisdiction. Support your findings with additional academic references.