World Crude Oil Markets: OPEC’s Supplier Power Remains Unchallenged
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World Crude Oil Markets : OPEC’s Supplier Power Remains Unchallenged. / Hirschhausen, Christian von; Holz, Franziska; Huppmann, Daniel et al.
in: DIW Weekly Report, Jahrgang 5, Nr. 22, 03.09.2009, S. 154-158.Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung
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RIS
TY - JOUR
T1 - World Crude Oil Markets
T2 - OPEC’s Supplier Power Remains Unchallenged
AU - Hirschhausen, Christian von
AU - Holz, Franziska
AU - Huppmann, Daniel
AU - Kemfert, Claudia
PY - 2009/9/3
Y1 - 2009/9/3
N2 - In spite of the sharp decline of crude oil prices since the fall of 2008, the current price level of approximately $65 per barrel is significantly higher than the long-term aver-age. The market power of the Organization of Petroleum Exporting Countries (OPEC), which is partially responsible for this price level, remains strong. While market prices for commodities such as coal are typically reflecting production costs, in the case of oil, market power combined with significant variations in demand leads to erratic price fluctuations. DIW Berlin’s model calculations show that although OPEC cannot operate as a standard cartel, its individual members can significantly influence prices by acting as powerful oligopolists. Furthermore, over the mid-term the OPEC countries will attain even greater significance because of the size of their oil reserves
AB - In spite of the sharp decline of crude oil prices since the fall of 2008, the current price level of approximately $65 per barrel is significantly higher than the long-term aver-age. The market power of the Organization of Petroleum Exporting Countries (OPEC), which is partially responsible for this price level, remains strong. While market prices for commodities such as coal are typically reflecting production costs, in the case of oil, market power combined with significant variations in demand leads to erratic price fluctuations. DIW Berlin’s model calculations show that although OPEC cannot operate as a standard cartel, its individual members can significantly influence prices by acting as powerful oligopolists. Furthermore, over the mid-term the OPEC countries will attain even greater significance because of the size of their oil reserves
KW - Economics
KW - Crude Oil
KW - Market Structure
KW - Cartel
KW - Simulation model
KW - Price indices
M3 - Journal articles
VL - 5
SP - 154
EP - 158
JO - DIW Weekly Report
JF - DIW Weekly Report
SN - 1860-3343
IS - 22
ER -