OPEC case study Flashcards
1
Q
what does opec stand for
A
organisation fo petroleum exporting countries
2
Q
what is opec an example of
members?
A
geopolitical relationship between countries
13 member coutrnies (Algeria, nigeria, saudi arabia)
3
Q
purpose of opec
A
operate as cartel of co-operative producers
attempt to control supply to the world market to influence price of oil
4
Q
example of opec’s influence
A
2014:
fall in price of oil due to increase shale oil production in US
&
demand decrease as china’s economic growth slowed
Opec released more oil supplies in world market, undercut US unconventional oil production, makes it less viable to produce
