By Dawn Bradford
A common vice among major stakeholders in international oil trade is ganging up to bully other traders through selfish market strategies. This gang could comprise of individual corporations who will mostly corrupt state officials to get their way. Others may be state run thus gaining immunity from legal action besides secretly using state resources to achieve their plans. The most influential oil cartel groups are those at the international level.
Perhaps the most conspicuous monopolist is the OPEC. Its membership consists of most oil heavyweights in the Middle East and many interested far flung producers. They also put much effort in convincing eligible non members to hop into their ride to reap the benefits of gaining more influence on their gains from sale of their resource.
Some are so powerful that they attempt to influence policies of governments sometimes fostering bad blood between partners. Most economies are supported by fuel run machinery and are thus keen to maintain fuel costs for stability. This is a very difficult task, mostly beyond state control especially for importers.
International monopolists are to blame for unprecedented hikes in local fuel prices. If they desire to raise the price of crude, all they do is reduce production at the oil mines. As an economic rule, the less the supply the higher the cost of the commodity.
There also exist cartels at a lower scale. They are the culprits behind volatile gas prices at the pump station despite a seemingly normal price to the barrel. They do this by holding large volumes of fuel in secret locations to create an artificial shortage.
Since most countries are not endowed with oilfields, or are ignorant of their presence, they are grappling with finding a means of cushioning their economies from oil cartel manipulative policies. Maybe it is now time to turn to technology and develop less consuming autos. They could also invest in research in alternative sources of energy.
Perhaps the most conspicuous monopolist is the OPEC. Its membership consists of most oil heavyweights in the Middle East and many interested far flung producers. They also put much effort in convincing eligible non members to hop into their ride to reap the benefits of gaining more influence on their gains from sale of their resource.
Some are so powerful that they attempt to influence policies of governments sometimes fostering bad blood between partners. Most economies are supported by fuel run machinery and are thus keen to maintain fuel costs for stability. This is a very difficult task, mostly beyond state control especially for importers.
International monopolists are to blame for unprecedented hikes in local fuel prices. If they desire to raise the price of crude, all they do is reduce production at the oil mines. As an economic rule, the less the supply the higher the cost of the commodity.
There also exist cartels at a lower scale. They are the culprits behind volatile gas prices at the pump station despite a seemingly normal price to the barrel. They do this by holding large volumes of fuel in secret locations to create an artificial shortage.
Since most countries are not endowed with oilfields, or are ignorant of their presence, they are grappling with finding a means of cushioning their economies from oil cartel manipulative policies. Maybe it is now time to turn to technology and develop less consuming autos. They could also invest in research in alternative sources of energy.
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