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  • Essay / The impact and influence of OPEC on world trade

    The selected key concept of the week is OPEC: The Organization of the Petroleum Exporting Countries was established on September 14, 1960 in Baghdad, in Iraq and registered with the United Nations Secretariat on November 6, 1962 (Organization of the Petroleum Exporting Countries, 2013). OPEC defines itself as “a permanent intergovernmental organization, currently composed of 12 oil-producing and exporting countries, spread across three continents: America, Asia and Africa (Organization of the Petroleum Exporting Countries, 2013, p. 1). I am particularly interested in exploring OPEC's influence on global trade and economies.Key TermThe formation of OPEC in the 1960s was driven by complex and interrelated factors, including the end of British colonization, increasing demand for petroleum energy, and the desire of member nations to benefit from – and control – the market price of "the most valuable commodity in the history of the world" (Myers & Lyford, ND, p. 1): crude oil. Today, OPEC claims to have three main objectives:1. Coordinate and unify the oil policies of Member Countries and determine the best means of safeguarding their individual and collective interests;2. Seek ways and means to ensure the stabilization of prices on international oil markets, with a view to eliminating harmful and unnecessary fluctuations; and3. Providing an economical and steady supply of oil to consuming countries and a fair return on capital to those investing in the oil industry (Organization of the Petroleum Exporting Countries, 2013). Summary of main article In January 1975, the Journal of Business published a very interesting article entitled "The Future of OPEC" in which the...... middle of paper ......laughs. (November 14, 2013). About OPEC. Retrieved from Organization of the Petroleum Exporting Countries: www.opec.orgCairnsa, RD and Calfucura, E. (2012). OPEC: market failure or power outage? Energy Policy, 50, 570-580. doi:http://dx.doi.org/10.1016/j.enpol.2012.07.058Dorraj, M. (1993). Will OPEC survive? Arabic Studies Quarterly, 19-33. Dunstan, S. (2007). The Yom Kippur War: The Arab-Israeli War of 1973. New York: Osprey Publishing. International Energy Agency. (2008). Global Energy Outlook. Paris: AIE. Mancke, R. (1975). The future of OPEC. Journal of Business, 11-19. Myers, J. and Lyford, M. (ND). Oil and peak oil. (pp. 1-109). University of Wyoming. Retrieved from http://www.uwyo.edu/smtc/_files/docs/projects/qr%20stem/cohort%204/symposium%201%20laramie%20june/myers/peak_oil.pdfSatterlee, B. (2009). Cross-border trade. Roanoke: Synergistics Inc. .