The Organization of the Petroleum Exporting Countries (OPEC) is a group made up of 12 of the world's major oil exporting countries. OPEC was founded in 1960 to coordinate the oil policies of its members and to provide technical and economic assistance to member states. OPEC is a cartel that aims to manage the supply of oil with the aim of setting the price of oil on the global market, in order to avoid fluctuations that could affect the economies of producing and purchasing countries. 5. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essay The goal of OPEC is to coordinate and unify oil policies among member countries, in order to guarantee fair and stable prices for oil producers; an efficient, economical and regular supply of oil for consuming countries; and a fair return on capital for those who invest in OPEC. OPEC has gained steady power and influence in the global oil market since the 1970s, when OPEC had approximately 50% market share in global crude oil production. A high market share also gave OPEC the negotiating power to set the price of oil above what it would be in a more competitive market. This means that OPEC has the ability to influence crude oil prices by increasing or decreasing production. Because of the role that the Organization of the Petroleum Exporting Countries (OPEC) plays in oil production levels and the influence it has on prices, OPEC affects all kinds of industries around the world. OPEC plays an important role in the global economy, and because money is closely linked to power, OPEC also has influence in political and public domains. The conventional wisdom among academics and policymakers is that OPEC is a powerful market player and has the ability to significantly influence global oil prices, even if it cannot control them perfectly. Furthermore, most people believe that OPEC achieves this by acting like a cartel, consciously producing less oil than it could in order to drive up its price. The link between oil growth and growth is studied in a panel of the Organization of the Petroleum Exporting Countries (OPEC), over a long period (1960-2011), taking into account the specific context of oil production. Their membership in the cartel places them under common management, which generates phenomena of transversal dependence/contemporary correlation within the panel. Jose Alberto Fuinhas, Antonio Cardoso Marques, Tânia Noélia Quaresma, (2015) “Does oil consumption promote the economic growth of oil producers? : Evidence from OPEC countries”, International Journal of Energy Sector Management, Vol. 9 Issue: 3, pp.323-333OPEC is a cartel, which is an association of manufacturers or suppliers with the aim of keeping prices high and restricting competition. At the end of 2014, OPEC reported reserves of 1.206 trillion barrels of oil, or 81% of total global reserves. Of these reserves, Saudi Arabia, Iran, Iraq, Kuwait, the United Arab Emirates, Qatar and Libya have 67.6% within their borders. Between June 2014 and July 2015, crude oil was in a bear market as the price of the energy commodity fell from over $100 per barrel to under $50 based on the active month's NYMEX oil futures contract. OPEC's mission is to "...ensure the stabilization of oil markets in order to guarantee efficient, economical and regular supplyin oil to customers, a stable income for producers and a fair return on capital for those who invest in the oil industry. While crude oil prices have fallen, the oil cartel has not cut production even though it is in its interest to keep prices high. Instead, the cartel allowed prices to fall in order to allow higher cost production to become unprofitable. . OPEC maintained its production cap at 30 million barrels per day. However, as prices fell, many cartel members experienced economic hardship as they received less income for their purchases and their oil production. When it comes to commodity or commodity markets, oil is one of the most politically traded commodities. Indeed, demand for crude oil is omnipresent while supplies are concentrated in some of the world's most politically turbulent regions. At the end of 2014, OPEC reported reserves of 1.206 trillion barrels of oil, or 81% of total global reserves. Of these reserves, Saudi Arabia, Iran, Iraq, Kuwait, the United Arab Emirates, Qatar and Libya have 67.6% within their borders. Between June 2014 and July 2015, crude oil was in a bear market as the price of the energy commodity fell from over $100 per barrel to under $50 based on the active month's NYMEX oil futures contract. As crude oil prices have fallen, the oil cartel has not cut production even though it is in its interest to keep prices high. Instead, the cartel allowed prices to fall in order to allow more expensive production to become unprofitable. OPEC maintained its production cap at 30 million barrels per day. However, as prices fell, many cartel members experienced economic hardship as they received less revenue for their oil production. Many tried to sell more oil to make up the financial shortfall. As of July 2015, OPEC produced and sold around 32 million barrels of crude per day, which is above the cap. The price of oil has fallen for a variety of reasons, including the slowdown in the global economy, the strength of the U.S. dollar, and increased production from non-OPEC countries. OPEC and 11 other major producers, including Russia, agreed in December to cut their combined production by nearly 1.8 million barrels per day (bpd) in the first half. The initial agreement was to last six months, with the possibility of a six-month extension. The International Energy Agency reports that oil production in African OPEC members Algeria, Angola, Libya and Nigeria has stagnated over the past five years at 7.12 million barrels per year. day, showing virtually zero growth from 2012 to 2017. The Arab Spring of 2011 looked like a failure as production quickly recovered after the war in Libya, but losses for African OPEC members continued due to higher security risks following the war in Libya. Arab Spring, uncompetitive tax conditions, difficult local content requirements and contract sanctity issues. On November 30, 2017, OPEC agreed to continue withholding 2% of global oil supply. This continues the policy it adopted on November 30, 2016, when it agreed to cut production by 1.2 million barrels. From January 2017, it will produce 32.5 million barrels per day. This is still above its 2015 average level of 32.32 mbpd. The agreement exempted Nigeria and Libya. He granted Iraq its.