Ultima Dragoon
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This thread is to help me understand for school how world oil prices are set. I have an assignment on oil, and I now about OPEC and it's agenda for price fitting, but I need more info. Can anyone help?
How are world oil prices are set?
- Thread starter Ultima Dragoon
- Start date
Basically, demand and supply.
What OPEC is doing is to try to restrain the supply side (thru production quotas for each member country), so that prices can rise and they can get a better bargain. Though it doesn't work that well nowadays, since some oil producers aren't OPEC members and also because of political pressure...
Add: The high prices at the moment are because of increased demand, particularly fr China. Also 'cause the oil derivatives traders are betting on higher oil prices in the future, so...
What OPEC is doing is to try to restrain the supply side (thru production quotas for each member country), so that prices can rise and they can get a better bargain. Though it doesn't work that well nowadays, since some oil producers aren't OPEC members and also because of political pressure...
Add: The high prices at the moment are because of increased demand, particularly fr China. Also 'cause the oil derivatives traders are betting on higher oil prices in the future, so...
Ultima Dragoon
FIRE! FIRE! FIRE!
Thanks, Knight-Dragon 
I'm asking here because the Wiki articles aren't so good on oil (basically, I don't like economic terms) and I know that some of the osters here would have an idea about how it is set.
I'm asking here because the Wiki articles aren't so good on oil (basically, I don't like economic terms) and I know that some of the osters here would have an idea about how it is set.
frekk
Scourge of St. Lawrence
Basically, oil prices are just supply/demand, as KD said.
If you want to get into the more advanced economics of it, you could mention the energy crisis of the 70s when OPEC put a big brake on supply. This caused "supply shock" which resulted in stagflation (its a bit heavy, you can look it up in wiki for a more detailed explanation, or you could just mention it as a period of rising unemployment and rising inflation). You should definately bring up the energy crisis period and talk about it a bit - do a bit of research on that, it will definately pay off.
The wiki on it is not too bad, you can probably skim over the economic stuff like Bretton Woods etc, talk about Yom Kippur and the embargo etc. Here it is:
http://en.wikipedia.org/wiki/1973_energy_crisis
If you want to get into the more advanced economics of it, you could mention the energy crisis of the 70s when OPEC put a big brake on supply. This caused "supply shock" which resulted in stagflation (its a bit heavy, you can look it up in wiki for a more detailed explanation, or you could just mention it as a period of rising unemployment and rising inflation). You should definately bring up the energy crisis period and talk about it a bit - do a bit of research on that, it will definately pay off.
The wiki on it is not too bad, you can probably skim over the economic stuff like Bretton Woods etc, talk about Yom Kippur and the embargo etc. Here it is:
http://en.wikipedia.org/wiki/1973_energy_crisis
Ultima Dragoon
FIRE! FIRE! FIRE!
Thanks, frekk. Hopefully this info will help me 
this assignment. Ill post what I got after I get it back. I also got a Food Tech assignment backk today, I got 40+++
Hopefully this info will help me this assignment. Ill post what I got after I get it back. I also got a Food Tech assignment backk today, I got 40+++ Similar threads
