1. WORLD OIL MARKET RECENT YEARS

2. THE MARKET Crude oil prices recovered strongly during the year from $33 to just above $80 in Jan 2010. Global oil demand remains driven by non - OECD countries like china, India. Higher non-OPEC oil production is also evident but OPECs share of world output has risen from 33.3% to above 45% . After steep production cuts in the last six months of 2008, OPEC oil producers have started to expand supply as world demand has recovered.OPEC- Organization of petroleum exporting2 countries. OECD- Organization for economiccooperation & development 3. WORLD OIL OUTPUT OPECsPercentageOPEC- Organization of petroleum exporting3 countries 4. OPEC Is a cartel of twelve countries which pursues ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations; giving due regard at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient and regular supply of petroleum to consuming nations, and a fair return on their capital to those investing in the petroleum4 industry.OPEC- Organization of petroleum exportingcountries 5. A cartel is a formal (explicit) agreement among competing firms. In other words its a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an Oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products. Collusion is an agreement, sometimes illegal and therefore secretive, which occurs between two or more persons to limit open competition by deceiving, misleading, or defrauding others of their legal rights. It is an agreement among firms to divide the market, set prices, or limit production.5 6. OECD It defines itself as a forum of countries committed to democracy and the market economy, providing a setting to compare policy experiences, seeking answers to common problems, identifying good practices, and coordinating domestic and international policies of its members.OECD- Organization for economic cooperation6 & development. 7. MEMBER COUNTRIESOPECOECD Algeria Austria, Belgium Angola Denmark, France Ecuador Canada, USA, UK Iran Iraq Japan, Australia, Mexico Kuwait Czech Republic Libya Spain, Germany Nigeria Italy, Greece Qatar Sweden, Ireland Saudi Arabia United Arab Emirates Are some of the important Venezuelamembers out of the total of 32.OPEC- Organization of petroleum exporting7 countries. OECD- Organization for economiccooperation & development 8. SETTING OIL PRICES OPEC is not the only organization responsible for setting prices. The next largest group of producers, members of the OECD and the Post-Soviet states produce 23.8% and 14.8%, respectively, of the worlds total oil production. 3 major international petroleum markets New York mercantile exchange The international petroleum exchange London Singapore international monetary exchange8 9. OPEC OIL PRODUCTION9 10. HOW CAN OPEC INFLUENCE PRICE OPEC currently produces 45% of the worlds crudeoil and owns two-thirds of the worlds oil reserves. OPEC sets production quotas for each of itsmembers to regulate the amount of oil contributedto the market. OPEC member countries meet to review their oilproduction policies and analyze market trends (supply vs demand )10 11. DEMAND AND SUPPLY MECHANISAM OPEC- Organization of petroleum exporting11 countries 12. EXPLAINING HIGH AND LOW OIL PRICES12 13. 13 14. 14 15. SPECULATION CAN CAUSE PRICE SPIKES SPECULATION: buy & sell goods, stocks etc.15 with risk of loss and hope of profit through changes in their market value. 16. SUPPLY MORE RESPONSIVEOVER TIME..16 17. FALLING DEMAND AS RECESSIONBITES17 18. 18 19. DIVERSE EFFECTS IN WORLDECONOMY OPEC- Organization of petroleum exporting19 countries 20. Saudi Arabia Value of OilExports20 21. UK TRADE IN OIL21 22. Actions required by the UN SecretaryGeneral Organizations like OPEC can manipulate the oil supply at therediscretion, this should be controlled by some authority in order to maintain equilibrium. Non oil exporting countries should also be allowed to participate to some extent in the organizations like OPEC and OECD.These actions are necessary because oil is a nonrenewable natural resource. No matter which countryholds the reserves, it is the responsibility of all the OPEC-nations to petroleum exporting Organization of conserve it.22 countries. OECD- Organization for economic cooperation & development 23. References Wikipedia OPEC OECD23