Organization of the Petroleum Exporting Countries (OPEC) was founded in 1960 in Bagdad, Iraq to establish and organize similar policies for oil producing countries. The organization aims to solve problems of both member states and oil-importing nations by tackling the complex nature of oil prices. The objective of OPEC is to unify oil policies of Members and determine means of safeguarding interests of members, and those of their customers. To achieve this objective, the members meet twice each year and come to a decision on whether to increase or decrease the combined oil production to maintain the oil prices that they find stable. There are many factors that are considered by the organization, for instance, forecasts for economic growth rates and the projected demand for oil when formulating oil policies and …show more content…
Despite oil prices averaging above hundred dollars per barrel in 2012, oil revenue has slowed down in the recent years thus affecting the prices of oil. This decrease has been caused by the increased oil production of oil producing countries, which has in turn resulted in a high supply of oil and low demand by oil …show more content…
This will help in increasing the demand for oil as a result of the short supply and thus increase the prices of oil in the whole world. The stakeholders have this position because they feel that they place a major role in the world oil market, and thus their interests must take precedence over those of others. An increase in the prices of oil will boost the economies of OPEC member countries by spurring economic development from the revenues that will be gotten from exporting