IDEAS home Printed from https://ideas.repec.org/p/sur/seedps/94.html
   My bibliography  Save this paper

Economic Models of OPEC Behaviour and the Role of Saudi Arabia

Author

Listed:
  • Nourah A. Al-Yousef

    (Surrey Energy Economics Centre (SEEC), Department of Economics, University of Surrey)

Abstract

Previous studies of OPEC have suggested ways of explaining the behaviour of OPEC as a group. The specific role of Saudi Arabia in the market and within OPEC has received attention from some authors. This study analyses the role of Saudi Arabia in these models and tries to find how much they explain the role of Saudi Arabia in the period from 1973 to the present. Models of OPEC behaviour are divided into four sets. The first set of models does not address the role of Saudi Arabia; they include monolithic cartel models and competitive models. The second set examines the role of Saudi Arabia in the oil markets; they include the different group models and the swing producer model. Then we discuss other theories of OPEC behaviour that may apply to Saudi Arabia, namely the target capacity utilisation model, the fiscal constraint model and the property right model. This is followed by a political interpretation of Saudi Arabia’s behaviour in the world oil market. Since Saudi Arabia is a major producer of oil it is likely to use its production and pricing policies to achieve certain objectives. These objectives are discussed in the light of each model and compared with expected oil policy.

Suggested Citation

  • Nourah A. Al-Yousef, 1998. "Economic Models of OPEC Behaviour and the Role of Saudi Arabia," Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) 94, Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.
  • Handle: RePEc:sur:seedps:94
    as

    Download full text from publisher

    File URL: http://www.seec.surrey.ac.uk/Research/SEEDS/SEEDS94.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Jeroen J. M. Kremers & Neil R. Ericsson & Juan J. Dolado, 1992. "The power of cointegration tests," International Finance Discussion Papers 431, Board of Governors of the Federal Reserve System (U.S.).
    2. Bacon, Robert W., 1991. "Rockets and feathers: the asymmetric speed of adjustment of UK retail gasoline prices to cost changes," Energy Economics, Elsevier, pages 211-218.
    3. Salkever, David S., 1976. "The use of dummy variables to compute predictions, prediction errors, and confidence intervals," Journal of Econometrics, Elsevier, pages 393-397.
    4. Severin Borenstein & A. Colin Cameron & Richard Gilbert, 1997. "Do Gasoline Prices Respond Asymmetrically to Crude Oil Price Changes?," The Quarterly Journal of Economics, Oxford University Press, pages 305-339.
    5. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Publishing House "SINERGIA PRESS", pages 106-135.
    6. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Publishing House "SINERGIA PRESS", pages 106-135.
    7. Kremers, Jeroen J M & Ericsson, Neil R & Dolado, Juan J, 1992. "The Power of Cointegration Tests," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(3), pages 325-348, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cairns, Robert D. & Calfucura, Enrique, 2012. "OPEC: Market failure or power failure?," Energy Policy, Elsevier, vol. 50(C), pages 570-580.
    2. De Santis, Roberto A., 2003. "Crude oil price fluctuations and Saudi Arabia's behaviour," Energy Economics, Elsevier, pages 155-173.
    3. De Santis, Roberto A., 2000. "Crude Oil Price Fluctuations and Saudi Arabian Behaviour," Kiel Working Papers 1014, Kiel Institute for the World Economy (IfW).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sur:seedps:94. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lester C Hunt). General contact details of provider: http://edirc.repec.org/data/eesuruk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.