Oil prices ‘totally unacceptable’, Nigerian president tells Qatar’s ruler
The article reports Nigeria’s open statement for unacceptable crude oil prices and the need to control the falling oil prices to the other members of the OPEC Cartel. Combined with the countries dependencies on Imports, the oil producing and exporting countries are experiencing sharp drop in their export revenues and sharper drain in their foreign currency reserves. To stall this sharp fall and economic disaster, The OPEC cartel has called for mutual cooperation to restrict production to control supply and thus create the artificial shortage to increase the crude oil price in world market.
Topics include Collusive Oligopoly, Game Theory, Tacit Collusion and its effects on quantity produced and the price. Explain using the diagrams for the price and output in both cases of Non Collusion and Collusion.
Evaluation will cover effects on Productive and Allocative Efficiencies because of the manipulated Price and Output on crude oil Producers and Consumers , Government and Society in short term and long term.