OPEC Dynamics in the Global Market Student’s Name Course Institutional Affiliation Date Introduction Crude oil occupies the most prominent position in the global market. The supply and consumption of crude oil contribute significantly to the Gross Domestic Product (GDP) of significant oil producing countries such as Iran Iraq Kuwait and Saudi Arabia among others. However crude oil prices may be influenced by the geopolitical and economic development of a particular country rather than the market rules of demand and supply. Also the oil price changes determine how the global economy operates concerning production and consumption of crude oil. Organization of Petroleum Exporting Countries (OPEC) is the most significant global oil production company. Amid the highly dynamic geopolitical and economic developments OPEC makes oil price changes in its member countries hence affecting the oil supply levels of other oil-producing nations. Also it acts as the global oil price determiner. For a decline in fiscal spending that would disrupt the economic performance of the private sector. Conclusion In conclusion lower oil prices will have a direct impact on the economic development and fiscal position of Saudi Arabia. The factors discussed above provide a clear illustration that the dynamics of oil economy are very complex and that the determination of oil prices in the global market goes beyond the basic rules of demand and supply and is influenced by geopolitical and economic developments. In spite of all the dynamics revolving around OPEC it remains to be the global oil price determiner. References Barnett J. (2008). The rivals: OPEC and G-77 in the climate regime. Global Environmental Politics 8(4) 1-8. Hamilton J. D. (2008). Understanding crude oil prices (No. w14492). National Bureau of Economic Research. Quandt W. B. (2010). Saudi Arabia in the 1980s: foreign policy security and oil. Brookings Institution Press. [...]
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. Directions: Your essay should be 3-5 pages in length, which does not include the title page, abstract, or required reference page, which is never a part of the content minimum requirements. Support your submission with course material concepts, principles, and theories from the textbook and at least three scholarly, peer-reviewed journal articles.