Wanna Argument?
September 2000 Fuel Crisis
So what determines the oil price?
OPEC exists to control the production and supply of petroleum onto the world market. As with most modern markets, the price paid by consumers of goods and services is determined by Demand and Supply.
If OPEC decides to release more petroleum (supply a greater quantity) to the market, price will, in most cases, fall.
If they choose to limit the supply onto the market, the price of oil rises. The price of oil in the world market has risen from $10 per barrel in 1998 to $38 per barrel on September 20th 2000. Why do you think this has happened?