Question 49
OPEC and Other International OrganisationsThe major strategy used by OPEC to influence oil price is by
- A.determining the quality of oil to be produced at any given period
- B.influencing buyers at the international market to buy at high prices
- C.allowing member countries to produce at their discretion
- D.increasing the supply of the commodity
Show the answer and explanation
Answer: A (determining the quality of oil to be produced at any given period)
Explanation
OPEC sets production quotas, controlling how much oil its members produce. Cutting supply raises the price, and raising supply lowers it.