Abstracts » Business

If it's not one thing, it's another

Article Abstract:

The Organization of Petroleum Exporting Countries (OPEC) was forced to take action when oil prices reached a perilous low. The prices declined after its decision to raise quota by 10% in Nov 1997, presumably was prompted by competition from non-OPEC members and cheating OPEC members, which have been leading to oversupply. As if this increase in supply is not enough, the demand side of the supply-demand scale was also thrown off-kilter by the mild weather in the last months of 1997 and the first months of 1998 as well as by the economic crisis in Asia, both of which contributed to lower demand. Despite the two rounds of cut imposed by OPEC, supply was not cut significantly due to the abundant oil production in Iraqi and the non-complying OPEC countries, notably Iran and Venezuela. Nevertheless, these cheats have been placated and more cuts are expected, which bode well for a more stable oil price.

Management, Organization of the Petroleum Exporting Countries

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The new oil shock: shocking and permanent

Article Abstract:

The political forces have been blamed for the volatility in the price of oil for 30 years, but ruthless exploitation, better technology and a global thirsty for oil is putting measurable strain on the reserves. Conservation appears to be the only smooth transition to the future, if oil prices stay high and the world economy survives them.

United States, Forecasts, trends, outlooks, Commodity & service prices, Petroleum & Energy Products, Forecasts and trends, Market trend/market analysis, Company pricing policy, Global economy, Petroleum conservation

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