How does OPEC actions impact the oil prices around the world especially on “WTI Crude” & “Brent Crude”? And why?

Social Studies

1 answer:

juin [17]3 years ago

3 0

Answer:

The OPEC member countries control a large percentage of the world's oil production which gives them a lot of power to affect world oil prices.

Explanation:

OPEC with a total number of 14 members at present produces about 40 percent of the world's crude oil. Therefore, OPEC actions do affect international oil prices because of the size of the market share the collective controls. However, there are also oil sources beyond the OPEC states. For example, Brent Crude refers to oil that is produced in the Brent oil fields and other sites in the North Sea. WTI is the benchmark crude for North America. WTI is better suited to the production of gasoline while Brent oil favors diesel fuel production. Because together OPEC holds three-quarters of the world's conventional oil reserves and has the world's lowest barrel production costs, it can influence world oil prices and supply by deciding to either produce more or less barrels. If OPEC lowers production the price of oil increases because Brent and WTI have to make up the difference, and their production prices are higher. However, OPEC's ability to affect prices is changing with Canada, China, Russia and the United States increasing their own output in recent years.

You might be interested in

What determines the monetary value of a good or service?

guajiro [1.7K]

Answer: In accordance with the neoclassical economics, the monetary value of a commodity or service is considered as the price of the commodity in an open market. This value is generally determined by the forces of demand and supply , i.e the demand for the commodity relative to supply. Several neoclassical economist evaluate the value of a product or service with the price, irrespective of the market being competitive.

7 0

3 years ago

if alice is using the central route to persuasion in the elaboration likelihood model the most convincing method to persuade her

kramer

The Elaboration Likelihood Model (ELM) states that when a person is able and motivated, they are most likely to adopt the primary route to persuasion.

What is elaboration likelihood model?
According to the elaboration likelihood model, there are two ways that people can be persuaded of anything, depending on how interested they are in the subject. Persuasion takes place through the central channel when people are highly motivated and have the time to consider their options. In this case, they thoroughly assess the advantages and disadvantages of a decision.

The dual process theory known as the elaboration likelihood model (ELM) of persuasion describes how attitudes change. Richard E. Petty and John Cacioppo created the ELM in 1980. The model seeks to clarify various methods of processing stimuli, their uses, and the effects they have on attitude change. The center route and the periphery route are the two main paths for persuasion suggested by the ELM.

To read more about Elaboration Likelihood method,
brainly.com/question/15827409
#SPJ4

5 0

2 years ago

which statement is the best sample of the just plain folks technique that would be used by a candidate running for office?

Step2247 [10]

Where are the statements?

3 0

3 years ago

WILL GIVE OUT BRAINLEST IF CORRECT which table best shows the imp

dexar [7]

Decrease in marine animal population Impact of Human Activities Human Activity Impact Replacing marsh with high-rise buildings Decrease in bird population

I think this might be correct

7 0

3 years ago

Read 2 more answers

Advantages and disadvantages of social and environmental responsibility

ExtremeBDS [4]

The Advantages and disadvantages of social and environmental responsibility in business includes the following.

<h3>Advantages</h3>

Profitability and Value
Better Customer Relations

<h3>Disadvantages</h3>

Costs Money to Implement
Conflicts with the Profit Motive
Consumers are Wise to Greenwashing

<h3>What is social and environmental responsibility </h3>

This refers to the consideration given to people, planet and profit issues that leads to sustained competitive advantage.

It involves Creating socially responsible and sustainable employment practices which help organizations meet current needs without compromising the ability to meet future needs.

Learn more about social and environmental responsibility at brainly.com/question/24511136

#SPJ1

7 0

2 years ago