OPEC: aims to safeguard the interests of its members by ensuring stable oil prices, while at the same time securing them a steady income.
Dramatic rises in the price of oil from 2002 onwards were the result of:
- rapidly increasing demand from developing countries like China and India
- OPEC's reluctance to increase oil supplies and risk a price crash
- Declining oil reserves
- AN improvement in the economies of some of the oil exporting countries; led to an increase in their own demand for oil
- Political instability in the Middle East
- Oil traders in the world's financial institutions…