Can we still call OPEC a cartel?

Dalia Ali

Bachelor's thesis

Abstract:

This paper raises the question whether OPEC actually acts like a cartel, given the fact that there were many controversy surrounding the organization due to its coordination failures, which resulted to an oil glut between 2014-2016. Consequently, the oil industry experienced a dramatic decline in oil prices due to the oil surplus. A comparison was made between OPEC's allocated quotas, and its actual oil production to investigate whether the members of the organization adhere to the assigned quota, to achieve highest possible prices.

Abstract:

This paper raises the question whether OPEC actually acts like a cartel, given the fact that there were many controversy surrounding the organization due to its coordination failures, which resulted to an oil glut between 2014-2016. Consequently, the oil industry experienced a dramatic decline in oil prices due to the oil surplus. A comparison was made between OPEC's allocated quotas, and its actual oil production to investigate whether the members of the organization adhere to the assigned quota, to achieve highest possible prices.

Keywords

collusion, Cartel, oligopolies

Keywords

Crude oil, OPEC, Middle East, Collusion, Cartel

Language used: English

Date on which the thesis was submitted / produced: 13. 10. 2016

Thesis defence

• Date of defence: 8. 6. 2017
• Supervisor: Dominik Stroukal
• Reader: Jaromír Prokop

Vysoká škola ekonomická v Praze

Bachelor programme / field:
Ekonomie a hospodářská správa / Economics