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OPEC and the Price of Petroleum

Theoretical Considerations and Empirical Evidence

  • Michael Rauscher
Book

Part of the Studies in International Economics and Institutions book series (INTERN.ECONOM.)

Table of contents

  1. Front Matter
    Pages I-XII
  2. Michael Rauscher
    Pages 1-7
  3. Michael Rauscher
    Pages 31-68
  4. Michael Rauscher
    Pages 106-129
  5. Michael Rauscher
    Pages 171-175
  6. Back Matter
    Pages 176-208

About this book

Introduction

1. 1. Oil price fluctuations and their impact on economic performance Drastic oil price fluctuations have been a major characteristic of the world petroleum market since the beginning of the seventies. The oil crises of 1973n4 and 1979/80 were followed by a dramatic drop of the oil price during the first two quarters of 1986. Starting from a level less than 2 $ per barrel in 1972, the spot market price of Arabian Light crude oil increased to some 35 $ in 1980, then slowly decreased, and finally fell to 13 $ in 1986 (annual averages). If monthly data are considered, the peaks of the oil price movement look even more dramatic. In December 1980 Arabian crude was traded for more than 40 $ a barrel, and in August 1986 the price was down at 8 $ (see Fig. 1. 1). 40 30 20 10 r o 84 88 76 80 72 Figure 1. 1: The spot market price of Saudi-Arabian Light crude oil! ! Data are taken from the Petroleum Economist and the OPEC Bulletin, various issues. 2 After the Second World War petroleum has become the most important energy resource. During the fifties and sixties its price was relatively low compared to other energy 2 sources like coal and firewood and it tended to drive them out of the market.

Keywords

Angewandte Ökonometrie Dynamische Systeme Energiewirtschaft Optimale Kontrolltheorie development dynamical systems econometrics economic theory equilibrium institutions optimal control optimization petroleum value-at-risk Ökonom

Authors and affiliations

  • Michael Rauscher
    • 1
  1. 1.Sonderforschungsbereich 178Universität KonstanzKonstanzGermany

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-642-83926-9
  • Copyright Information Springer-Verlag Berlin Heidelberg 1989
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-642-83928-3
  • Online ISBN 978-3-642-83926-9
  • Series Print ISSN 1431-6366
  • Buy this book on publisher's site