HISTORY
HISTORY OF THE MIDDLE EAST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Controls fruit costs
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Controls the value of the American dollar
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Controls cost of oil
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Controls the Olympics
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Detailed explanation-1: -How does OPEC+ control oil prices? OPEC+ regulates the supply of oil to influence the price of the commodity on the world market. The group can achieve this by coordinating supply cuts when the price is deemed too low and supply increases when its members believe prices are too high.
Detailed explanation-2: -Because its member countries hold the vast majority of crude oil reserves, the organization has considerable power in these markets. 13 As a cartel, OPEC members have a strong incentive to keep oil prices as high as possible while maintaining their shares of the global market.
Detailed explanation-3: -Oil Prices Jump, as OPEC Production Cut Draws U.S. Concern. A Saudi-led move to reduce output among major oil producers pushed prices higher. The White House said it didn’t think the cuts were warranted.
Detailed explanation-4: -Due to the inelastic nature of oil in the short run, the suppliers of oil such as OPEC charge very high prices. However, in the long run, people can find substitutes for oil, such as people owning fuel-based cars can shift to electric cars. So, in the long run, the demand for oil is more elastic.
Detailed explanation-5: -Venezuela has the largest amount of oil reserves in the world with more than 300 billion barrels in reserve. Saudi Arabia has the second-largest amount of oil reserves in the world with 297.5 billion barrels.