This revision note focuses on the role of OPEC in the global oil market.

What is OPEC?

A producer cartel founded in 1960 – now has thirteen members although several other countries are considering becoming members (and Indonesia’s place in under threat)
Controls around 45% of world crude oil output (compared to 55% in the mid 1970s) and just over half of world oil exports
But has a larger share of world crude oil reserves (long run importance?)
Controls it’s own supply through a system of output quotas
Many of the OPEC nations have accumulated huge FX reserves as the world price of oil has soared – contributing to the growing power of sovereign welfare funds
The UK is a net importer of oil, along with Norway and the USA it is not part of OPEC

Revision note
Revision_OPEC_Oil_Prices.pdf

Accompanying PowerPoint charts
OPEC.ppt