The effect of OPEC production allocations on oil prices

This paper provides an analysis of oil pricing and supply through an examination of production allocations in conjuction with an investigation of unlagged and optimally lagged relationships between key weekly (reported daily) crude oil price series interacting with OPEC prices and price changes. With crude oil prices at record highs, high inflation in developing countries and the onset of systematic risk in global financial markets, the major global players should well remember the impact of oil supply interference of the late 1980s early 1990s on global financial stability.