OPEC and the rising price of oil

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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…

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