In a simplified theoretical framework we model the strategic interactions between OPEC and non-OPEC producers and the implications for the global oil market. Depending on market conditions, OPEC may find it optimal to act either as a monopolist on the residual demand curve, to move supply...

This paper has studied the relationship between oil price and exchange rate in OPEC members. In this paper, we investigate the long-run relationship between real oil prices and real exchange rates by using monthly panel of seven countries of OPEC members from 2000:01 to 2007:12. We first test...