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    OPEC & Its Influence On Price of Oil

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    Lulav Barwary
    OPEC is an intergovernmental organization that was founded in 1960 to coordinate and unify petroleum policies among its member countries. It controls around 60% of the global oil supply and aims to stabilize oil prices in international markets. While OPEC tries to influence prices, they are ultimately set on major petroleum exchanges based on supply and demand factors. Looking forward, OPEC is expected to remain an influential player in the global oil industry as fossil fuels continue meeting much of the world's energy needs.

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    © All Rights Reserved
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    OPEC & Its Influence On Price of Oil

    Uploaded by

    Lulav Barwary
    22 views17 pages
    OPEC is an intergovernmental organization that was founded in 1960 to coordinate and unify petroleum policies among its member countries. It controls around 60% of the global oil supply and aims to stabilize oil prices in international markets. While OPEC tries to influence prices, they are ultimately set on major petroleum exchanges based on supply and demand factors. Looking forward, OPEC is expected to remain an influential player in the global oil industry as fossil fuels continue meeting much of the world's energy needs.

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    1581061443676_OPEC & its influence on Price of Oil

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    OPEC is an intergovernmental organization that was founded in 1960 to coordinate and unify petroleum policies among its member countries. It controls around 60% of the global oil supply and aims to stabilize oil prices in international markets. While OPEC tries to influence prices, they are ultimately set on major petroleum exchanges based on supply and demand factors. Looking forward, OPEC is expected to remain an influential player in the global oil industry as fossil fuels continue meeting much of the world's energy needs.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    22 views17 pages

    OPEC & Its Influence On Price of Oil

    Uploaded by

    Lulav Barwary
    OPEC is an intergovernmental organization that was founded in 1960 to coordinate and unify petroleum policies among its member countries. It controls around 60% of the global oil supply and aims to stabilize oil prices in international markets. While OPEC tries to influence prices, they are ultimately set on major petroleum exchanges based on supply and demand factors. Looking forward, OPEC is expected to remain an influential player in the global oil industry as fossil fuels continue meeting much of the world's energy needs.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 17

    OPEC & its influence

    on Price of Oil
    OPEC
    Prepared by
    Lulav saeed
    Suma Khalid

    S u p e r v i s e d b y / M i s s . L u l a v M u fi t y
    Introduction
    • Organization of Petroleum Exporting Countries or OPEC
    has the largest oil reserves in the world and is
    responsible for the supply and prices of petroleum
    products to major extent. This interesting report
    explores more about the functioning of OPEC and on
    how it influences the price of Crude Oil globally.

    Add a footer 2
    FR

    Add a footer 3
    Why OPEC ?
    • Stable oil market, with reasonable prices and
    steady supplies to consumers : OPEC was
    made to make sure that the price of the oil in
    the world market will be properly controlled.
    There main goal is to prevent harmful
    increase in price of oil in global market and
    make sure that nations that produce oil have
    a fair profit.

    Add a footer 4
    FR

    ESTABLISHMENT
    • Permanent and intergovernmental organization. Founded on
    September 10-14, 1960. Founding members- Iran, Iraq, Kuwait,
    Saudi Arabia and Venezuela. A collective act of sovereignty by
    oil exporting nations, a tuming point in state control over
    natural resources. OPEC's headquarters, first located in Geneva,
    was moved to Vienna in 1965.

    Add a footer 5
    Objectives
    O b j e c ti v e s o f O P E C

    A. To coordinate & unify the petroleum policies of the member countries and to
    determine the best means for safeguarding their individual and collective
    interests.
    B. To seek ways and means of ensuring the stabilization of prices in international
    oil markets, with a view to eliminating harmful and unnecessary fluctuation;
    and
    C. To provide an efficient, economic and regular supply of petroleum to
    consuming nations and a fair return on capital to those investing in the
    petroleum industry.

    Add a footer 6
    OPEC
    FR
    OPEC
    Short History

    • OPEC was founded in Baghdad, triggered • Thus the Organization of the Petroleum
    by a 1960 law instituted by American Exporting Countries (OPEC) was formed
    President Dwight Eisenhower that and now it is a cartel of twelve
    forced quotas on Venezuelan and developing countries. OPEC has
    Persian Gulf oil imports in favor of the maintained its headquarters in Vienna
    Canadian and Mexican oil industries. since 1965 and hosts regular meetings
    among the oil ministers of its Member
    Countries.

    Add a footer 8
    OPEC Growth FR

    • • In the 1980s, the price of oil was


    • • In the 1970s, OPEC began to gain allowed to rise before the adverse
    influence steeply raised oil prices effects of higher prices caused demand
    during the 1973 oil crisis in response to and price to fall.
    US aid to Israel during the War.

    • In the 2000s, a combination of factors


    pushed up oil prices even as supply
    remained high. Prices rose to then record-
    high levels in mid-2008 before falling in the
    2007 to response financial crisis.

    Add a footer 9
    FR

    OPEC Click icon to add picture

    • OPEC spare capacity "provides an


    indicator of the world oil market's
    ability to respond to potential crises
    that reduce oil supplies." Saudi Arabia
    is the largest oil exporter in the world
    and largest oil producer of the OPEC
    nations. It has the greatest spare
    capacity at about 1.5 million barrels per
    day to 2 million barrels per day.

    Add a footer 10
    FR
    The Statute further
    distinguishes between
    three categories of
    membership:
    • Founder
    FullMembers
    Members ofare the
    theFounder
    Organization are those
    Members, plus countries
    those which were
    countries
    • Associate
    represented Members
    at OPEC's are the countries
    first Conference, which
    held in do notIraq,
    Baghdad, qualify for
    in September
    whose
    full applications
    membership, butfor Membership
    which are have been
    nevertheless accepted
    admitted by such
    under the
    1960, and which
    Conferencesigned the original establishing OPEC. agreement
    special conditions as may be prescribed by the Conference .

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    FR
    Does OPEC control
    the Oil Prices?
    • Yes-, OPEC's crude oil exports represent about 60 per cent of the crude oil
    traded internationally .
    • No-OPEC Member Countries produce about 42 per cent of the world's crude oil
    and 18 per cent of its natural gas.
    • The price of crude oil is set by movements on the three major international
    petroleum exchanges:

    I. The New York Mercantile Exchange.


    II. The International Petroleum Exchange in London.
    III. The Singapore International Monetary Exchange.
    • OPEC is trying to price the OIL in Euros rather then in Dollars- As the imports from Europe for OPEC
    Add a countries
    footer is increasing and the US dollar is becoming unstable in the market. 12
    FR

    Add a footer 13
    FR
    Current Members

    Add a footer 14
    FR
    Advantages & disadvantages

     Advantages Disadvantages
    • Economic: • Political:
    • Oil supply and prices (to lesser • Inner disagreements
    extent) control • Interdependence with Asia (e.g. China) and
    • Enables economic growth Western countries (US, EU)
    • Ensures market stability

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    FR
    Summery
    Prices are fore-casted to rise due to global economic recovery (leading to
    increased oil demand), and slower growth in non-OPEC oil supply and continuous
    production restraint by members of OPEC. Despite environmental concerns and
    various conservation policies, the energy demand is bound to grow due to
    economic growth, expanding population and higher standards of living. Energy
    growth can be expected to grow by more than 40% by 2030. Fossil fuels, oil and
    natural gas will continue to meet most of the world’s energy needs and thus OPEC
    having the maximum oil reserves will remain the leading player in the world oil
    scenario. Meeting the demand of oil consumers, being mindful of the major
    global climate change challenges, as well as oil capacity investment needs, are
    likely to be the predominant issues facing this large organization going forward.

    Add a footer 16
    Thank You.

    FR
    https://
    www.greatlakes.edu.in/gurgaon/sites/default/files/OP
    EC&its_Influence_on_the_Price_of_Oil_Ajit_Basil.pdf
    FABRIKAM RESIDENCES
    https://www.slideshare.net/mobile/ClintonMusha
    hary/opec-organization-of-petroleum-exporting-
    countries-76228669

    https://www.slideshare.net/mobile/asitdholakia/opec-n
    ew-ppt

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