The International Oil Market: A Case of Trilateral Oligopoly

Over the past fifteen years, events in the international oil market have had a direct impact on the personal well-being of members of both developed and underdeveloped economies. They have also had a wide-ranging impact on the evolution of the world economy, an impact which varies widely from country to country. As a result of the sharp changes that have occurred in the oil market over the last fifteen years, it is easier to identify the reasons why this sector occupies such a central role in modern economies. First, oil is an indispensable means of production, as a raw material for the petrochemical sector, and - above all - as a source of energy. In this respect, the fact that the price of oil was for a long period low, compared with available alternatives, and decreasing in real terms, helps to explain the impact of oil on the world's economies. Since changes in the direction of techno-logical research and the adaptation and adjustment of production equip-ment require substantial periods of time, it is likely that, despite the recent large increases in its price, oil will be required for many years to come to satisfy a substantial, if decreasing, share of the energy require-ments of all countries.