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BHARAT D.

JADHAV
 Cartel of countries

 More than two third of oil


reserve
OPEC headquarters in Vienna
 40% of total oil production

 Establishment
 Quota imposition by U.S

 Initiation by Venezuela
1st OPEC Conference,
Baghdad, September 10–14
 Bagdad Conference (10-14 1960

oct. 1960)

 Non – Permanent Member


Country Joined OPEC Location

Algeria 1969 Africa

Angola 2007 Africa

Ecuador(**) rejoined 2007 South America

IR Iran* 1960 Middle East

Iraq* 1960 Middle East

Kuwait* 1960 Middle East

SP Libyan AJ 1962 Africa

Nigeria 1971 Africa

Qatar 1961 Middle East

Saudi Arabia* 1960 Middle East

United Arab Emirates 1967 Middle East

Venezuela* 1960 South America

*founder Members
** Ecuador joined OPEC in 1973, suspended its membership from Dec. 1992-Oct. 2007
 Objectives

 Membership

 Organs
 The Conference
 The Board of Governors
 The Secretariat

es
Abdalla Salem El-Badri
Secretary General
 Division of o/p and sales

 Control of o/p and price

 Co-operation among countries

 Demand for reduction in production quota

 Iraqi invasion of Kuwait


OPEC Quotas and Production in thousands of barrels per day [27]

Country Quota (7/1/05) Production (1/07) Capacity

Algeria 894 1,360 1,430

Angola 1,900 1,700 1,700

Ecuador 520 500 500

Iran 4,110 3,700 3,750

Iraq 1,481

Kuwait 2,247 2,500 2,600

Libya 1,500 1,650 1,700

Nigeria 2,306 2,250 2,250

Qatar 726 810 850

Saudi Arabia 10,099 8,800 10,500

United Arab Emirates 2,444 2,500 2,600

Venezuela 3,225 2,340 2,450

Total 31,422 30,451 32,230


 Many factors

 Supply and Demand

 Production by OPEC

 Stability of OPEC countries

 Refining, Taxes and Distribution chain

 Basket prices
Monthly Basket Price Yearly Basket Price
Jun-08 128.33 1996 20.29
Jul-08 131.22 1997 18.68
Aug-08 112.41 1998 12.28
Sep-08 96.85 1999 17.48
Oct-08 69.16 2000 27.6
Nov-08 49.76 2001 23.12
Dec-08 38.6 2002 24.36
Jan-09 41.54 2003 28.1
Feb-09 41.41 2004 36.05
Mar-09 45.78 2005 50.64
Apr-09 50.2 2006 61.08
May-09 56.98 2007 69.08
Jun-09 68.36 2008 94.45
Jul-09 64.59 2009 52.99
 1973 oil crisis

 Yom Kippur War

 Resupply to Israel by U.S

 Increase in oil price


 Caspian Basin

 Russia

 Sudan