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S Of Opec In Globalization

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Running Head: DYNAMISM OF OPEC IN GLOBALIZATION
Dynamism of OPEC in Globalization
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DYNAMISM OF OPEC IN GLOBALIZATION 2
Introduction
OPEC, for the last ten years, has faced dynamics in the global market in the fluctuation of
persistent fluctuation of prices. The dynamism has come up in the field of politics, whereby
governance approach and the state approach have incorporated geopolitics in their roles in the
energy industry. OPEC has faced the challenge of uncertainty in the global market, for instance,
the possible increase of production. OPEC leadership has also changed and more emphasis has
been put on young officials to further impact on the industry. Indonesia has brought out the
dynamism in its membership reactivation has impacted on the demand of oil.
Price Imbalances
Currently, oils prices have reported a decline of 40% as compared to the prices one year
ago. In a response to the elevating oil production in the US as well as maintaining a good market
share, OPEC has made efforts in retaining a 30 million barrels output per day. OPEC seems to
display unfruitful interventions toward the control of prices (Bina, 2013). Despite their successful
maintenance if the vast number of barrels, OPEC officials report an impossible enforcement due
to the lack of quotas in the individual nations as from 2012. In addition, Saudi Arabia claim that
they are ready to make an output in accordance to their clients demands. Saudi Arabia, a year ago
made requests to the OPEC cartel to overlook the price management policies set up decades ago
through regulating oil supplies. As compared to recent prices in others years, oil prices have risen
by almost 20 dollars a barrel from the 45 dollars a barrel in January (Badaruddin, 2016).
Competition in oil industry
OPEC has also faced an influx of huge amounts of oil extracted from the United States
shale rocks. Looking form the oil history, the shale boom has caused a series of changes in the

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Running Head: DYNAMISM OF OPEC IN GLOBALIZATION Dynamism of OPEC in Globalization Name Instructor Course Institution Affiliation Date DYNAMISM OF OPEC IN GLOBALIZATION 2 Introduction OPEC, for the last ten years, has faced dynamics in the global market in the fluctuation of persistent fluctuation of prices. The dynamism has come up in the field of politics, whereby governance approach and the state approach have incorporated geopolitics in their roles in the energy industry. OPEC has faced the challenge of uncertainty in the global market, for instance, the possible increase of production. OPEC leadership has also changed and more emphasis has been put on young officials to further impact on the industry. Indonesia has brought out the dynamism in its membership reactivation has impacted on the demand of oil. Price Imbalances Currently, oils prices have reported a decline of 40% as compared to the prices one year ago. In a response to the elevating oil production in the US as well as maintaining a good market share, OPEC has made efforts in retaining a 30 million barrels output per day. OPEC seems to display unfruitful interventions toward the control of prices (Bina, 2013). Despite their successful maintenance if the vast number of barrels, OPEC officials report an impossible enforcement due to the lack of quotas in the individual nations as from 2012. In addition, Saudi Arabia claim that they are ready to make an output in accordance to their clients demands. Saudi Arab ...
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