By: Mandy McGuire&

Eli Frischmann

CartelOPEC is a cartel which is a “combination of

independent commercial or industrial enterprises designed to limit competition or fix prices, therefore manipulating supply.”

Objectives“ Coordinate and unify petroleum policies among

members in order to secure and stabilize prices for producers.”

In other words… They tell each member country how much

petroleum they are allowed to bring to the market in order to manipulate prices.

Bring Less Prices Increase

Bring More Prices Decrease

MembersLed by Saudi ArabiaIran IraqKuwaitVenezuelaAlgeria

QatarIndonesiaSocialist People’s

Libyan Arab Jamahiriya

United Arab Emirates

Nigeria Ecuador

ProductsMotor Gasoline NaphthaOther PetroleumPetroleum CokeRefinery Gas (not

liquefied)Ethane

Aviation GasolineGas/ Diesel OilHeavy Fuel Oil

ResidualKeroseneJet FuelLiquefied Petroleum

Gases

Oil Price HistoryControling the priceOPEC nationsAfter 1980October 10, 2008March 12, 2008July 24, 2008Price Declining

1973, 1979 Oil Crisis1973 oil crisis

OPEC refuse

Great Depression

Six Years Later

Iranian Revolution

Influences Competing countries- OPEC controls 40% of the

oil market but that still leaves 60% open to countries such as Russia. If Russia decides they want to put more oil onto the market, OPEC will have to respond by also bring more oil to the market with competitive prices.

- NOT A MONOPOLY!

Prices per barrel of oil

-If the price per barrel of oil goes up, OPEC will not be able to bring as much petroleum to the market, affecting supply.

Other Information

November 19, 2007

Euro

Bibliography1. "Brief History." OPEC. Organization of the Petroleum Exporting

Countries. 28 Oct. 2008 <http://www.opec.org/aboutus/>

2."Cartel." Merriam-Webster Onlline. Merriam-Webster. 28 Oct. 2008 <http://www.merriam-webster.com/ dictionary/cartel>

3. "Petroleum Products." International Energy Agency. IEA. 28 Oct. 2008 <http://www.iea.org/Textbase/ stats/defs/sources/petrol.htm>

"OPEC." Wikipedia. 29 Oct 2008 <http://en.wikipedia.org/wiki/OPEC>.

"1979 energy crisis." Wikipedia. 29 Oct 2008 <http://en.wikipedia.org/wiki/1979_oil_crisis>

"1973 oil crisis." Wikipedia. 29 Oct 2008 <http://en.wikipedia.org/wiki/1973_oil_crisis>

"Price of petroleum." Wikipedia. 29 Oct 2008 <http://en.wikipedia.org/wiki/Price_of_oil>