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OPEC Commodities Project Mandy and Eli


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OPEC Commodities Project

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OPEC Commodities Project Mandy and Eli

  1. 1. By: Mandy McGuire & Eli Frischmann
  2. 2. Cartel <ul><li>OPEC is a cartel which is a “combination of independent commercial or industrial enterprises designed to limit competition or fix prices, therefore manipulating supply.” </li></ul>
  3. 3. Objectives <ul><li>“ Coordinate and unify petroleum policies among members in order to secure and stabilize prices for producers.” </li></ul><ul><li>In other words… </li></ul><ul><li>They tell each member country how much petroleum they are allowed to bring to the market in order to manipulate prices. </li></ul><ul><li>Bring Less Prices Increase </li></ul><ul><li>Bring More Prices Decrease </li></ul>
  4. 4. Members <ul><li>Led by Saudi Arabia </li></ul><ul><li>Iran </li></ul><ul><li>Iraq </li></ul><ul><li>Kuwait </li></ul><ul><li>Venezuela </li></ul><ul><li>Algeria </li></ul><ul><li>Qatar </li></ul><ul><li>Indonesia </li></ul><ul><li>Socialist People’s Libyan Arab Jamahiriya </li></ul><ul><li>United Arab Emirates </li></ul><ul><li>Nigeria </li></ul><ul><li>Ecuador </li></ul>
  5. 5. Products <ul><li>Motor Gasoline </li></ul><ul><li>Naphtha </li></ul><ul><li>Other Petroleum </li></ul><ul><li>Petroleum Coke </li></ul><ul><li>Refinery Gas (not liquefied) </li></ul><ul><li>Ethane </li></ul><ul><li>Aviation Gasoline </li></ul><ul><li>Gas/ Diesel Oil </li></ul><ul><li>Heavy Fuel Oil Residual </li></ul><ul><li>Kerosene </li></ul><ul><li>Jet Fuel </li></ul><ul><li>Liquefied Petroleum Gases </li></ul>
  6. 6. Oil Price History <ul><li>Controling the price </li></ul><ul><li>OPEC nations </li></ul><ul><li>After 1980 </li></ul><ul><li>October 10, 2008 </li></ul><ul><li>March 12, 2008 </li></ul><ul><li>July 24, 2008 </li></ul><ul><li>Price Declining </li></ul>
  7. 7. 1973, 1979 Oil Crisis <ul><li>1973 oil crisis </li></ul><ul><li>OPEC refuse </li></ul><ul><li>Great Depression </li></ul><ul><li>Six Years Later </li></ul><ul><li>Iranian Revolution </li></ul>
  8. 8. Influences <ul><li>Competing countries </li></ul><ul><li>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. </li></ul><ul><li>NOT A MONOPOLY! </li></ul><ul><li>Prices per barrel of oil </li></ul><ul><li>- If the price per barrel of oil goes up, OPEC will not be able to bring as much petroleum to the market, affecting supply. </li></ul>
  9. 9. Other Information <ul><li>November 19, 2007 </li></ul><ul><li>Euro </li></ul>
  10. 10. Bibliography <ul><li>1. &quot;Brief History.&quot; OPEC . Organization of the Petroleum Exporting Countries. 28 Oct. 2008 <> </li></ul><ul><li>2.&quot;Cartel.&quot; Merriam-Webster Onlline . Merriam-Webster. 28 Oct. 2008 < dictionary/cartel> </li></ul><ul><li>3. &quot;Petroleum Products.&quot; International Energy Agency . IEA. 28 Oct. 2008 < stats/defs/sources/petrol.htm> </li></ul><ul><li>&quot;OPEC.&quot; Wikipedia . 29 Oct 2008 <>. </li></ul><ul><li>&quot;1979 energy crisis.&quot; Wikipedia . 29 Oct 2008 <> </li></ul><ul><li>&quot;1973 oil crisis.&quot; Wikipedia . 29 Oct 2008 <> </li></ul><ul><li>&quot;Price of petroleum.&quot; Wikipedia . 29 Oct 2008 <> </li></ul>