The Iran Daily reports on OPECs failure to establish a good link with global trends and the world business trends of Globalization. The Organization of Petroleum Exporting Countries (OPEC) was formed when seven major oil companies had monopolized the oil market in the 1960s at that time the organizations primary responsibility was to insure the rights of crude oil producers worldwide. Today OPEC has 11 countries as members and supplies more the 40% of the worlds oil and maintains 78% of the reserves. OPEC has been instrumental in creating agreements with the world trade organization on strategic policy for trade and tariffs that insure that oil producers achieve a reasonable rate of return and that stable supplies of oil for is available for consumption. The Iran Daily newspaper printed that the price spiral is a direct reflection of OPECS inability to keep pace with Globalization. OPEC was established 40 years ago and has proven itself slow for adopting policy. These policies and guidelines that it does adopt seem to depend solely on the contribution and growth of the international economy only.
Today OPEC policies do not directly support the concept of convergence, which is now a distinguished part of the global economy. The concern is that the market requirements have changed. With the on set of technology advances and corporate mergers OPEC production and sales policies have are not meeting the demands of this global market. It is important to mention that no international organization has the ability to declare policy on its own. But one of sole OPECs objectives is to draft and purpose policies that will stabilize the oil market. It is also note worthy to mention that oil prices are also rising because of the high cost cleaner-burning gasoline that is required in many cities.
The Essay on Palm Oil Policy
Summary of the case: Palm Haul Sdn Bhd (PHSB) established in 2002 at Taiping Perak. It was a small and medium sized enterprise in crude palm oil (CPO) transportation business. PHSB was managed by En.H.Rossly and son in law of its founder, Datu S. Najeed. PHSB was facing the same problems likes others transportation companies which is drivers embroiling in oil piracy. The transportation companies ...
Oil companies are using this as a excuse to explain the price gouging. There is no justifiable answer as to the price gap between conventional gas and cleaner fuel says OPEC. Suspicion of collusion has been touted by several analyst and many are calling for Clinton administration to take action against countries that support the cartels policy that control the worlds oil supplies. There is currently a proposal to allow anti-trust lawsuits to be filed in the United States against OPEC and other oil producing countries that participate in price agreements. Josef Herbert of the associated press reported that energy secretary Bill Richardson is facing ridicule for being weak willed and having a policy of quite diplomacy for dealing with OPEC. The criticism because Richardson is also against releasing any from the Strategic Petroleum Reserve to help influence the prices. Representative Benjamin Gilman stated that Richardsons administration is still firing blanks when in should be making an all out attack During the 110th summit of organizations for petroleum exporting countries responded to the market demands by agreeing to have OPEC members increase output by 2.8 percent, this decision to raise output is due to the high demand and low inventories. During that summit crude oil prices were being compared to that of the energy crises of 1973.
And OPEC is acknowledged that they are admittedly worried about the upward trend. In summary I believe that there is a fair amount collusion occurring between OPEC and other oil producing countries and this price gouging is something that as finally made me take notice and ask what is driving gas to such incredible costs. It is easy to point the finger at fuel station where we purchase fuel but the reality is that they are not only to blame for the state of the oil prices. In my opinion the significant contributor is OPEC. After my investigation it seems clear that its inability to create policies that are in line with the best interest of its members, has led to the current price increases. Without drastic ratification, OPEC will be unable to achieve the stability needed to adequately maintain and supply the world markets with oil
The Essay on Oil and Fuel Prices
... the rise of oil prices. Associated press, 27th 2008) Whenever oil and fuel prices go up, the Organization of the Petroleum Exporting Countries (OPEC) is held responsible ... of the market that determines the price of the commodity. The price of oil in the United States of America varies from place to ...
Bibliography:
Sources Iran Daily Newspaper. . .
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. . . www.cnn.com Associated Press. . . .
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. . . . . www.dailynews.com Washington Post.
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. . www.prnewswire.com.
