VOL. XXX

NO. 4

03-November-1986

OPEC'S PRICING OPTIONS

(The following is an extract from a working paper prepared recently by theOPEC Secretariat, dealing specifically with alternative pricing mechanisms openfor consideration by OPEC).

PRICING OPTIONS

The price of oil and its supply are interlinked. Theoretically, it isimpossible to fix both price and supply while demand is fluctuating. Faced withdemand fluctuations, either the price has to float or the supply has to beadjusted in order to bring...