OPEC and the international oil market: can a cartel fuel the engine of economic development?

Abstract

The OPEC cartel was formed to promote two economic goals, one microeconomic--low oil market volatility--the other macroeconomic--promotes economic development of its members. These goals create a tension since the cartel's single tool is output quotas.

Using this dual micro/macro perspective we analyze oil exporting countries' behavior.

Keywords

• OPEC
• International oil market
• oil export