Organization of Petroleum Exporting Countries (OPEC) and Role of Saudi Arabia

Organization of Petroleum Exporting Countries (OPEC) and Role of Saudi Arabia

Nađa , Dreca

The aim of this research is to explain the OPEC position and the role of Saudi Arabia within OPEC. Saudi Arabia as the largest producer and country with largest oil reserves of oil attract many attention and many studies try to explain which role Saudi Arabia plays within OPEC, is it the role of dominant producer and which strategy Saudi Arabia used during its membership in order to keep its position and its market share. Saudi Arabia role is to keep the balance of production within OPEC. Saudi Arabia was explained as swing producer, and in order to protect itself and its interest because of cheating of other members of OPEC, it was forced to adopt the strategy tit-for-tat. There is big question of it is good to have dominant producer, or all of them to be equal. Keywords: OPEC, Saudi Arabia, Cartel, Oil prices, dominant producer

Conference or Workshop Item
PeerReviewed

2012-05-31

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