We investigate the extent to which OPEC has succeeded in its self‐stated mission of stabilising the oil market and the implications for the world’s economy. We discuss the modelling framework developed by Pierru, Smith and Zamrik (2018) and Pierru, Smith and Almutairi (2020) and update their analyses. Unstabilised monthly oil prices that would have prevailed in the absence of OPEC’s spare capacity policy are determined for the September 2001–June 2020 period. Overall, OPEC’s management of spare capacity has significantly decreased the monthly volatility of the oil price. Three subperiods (commodity boom, market‐share campaign, OPEC+) can, however, be distinguished in terms of impact on price volatility. The annual value of OPEC’s spare capacity to the world’s economy is estimated to be 193.1 billion in 2019 US dollars.
![Hossa Almutairi](https://wscdn-01.kapsarc.org/wp-content/uploads/2017/05/Picture167-150x150.jpg)
Principal Fellow
Dr. Hossa Almutairi is currently a Principal Fellow at KAPSARC, and her research focuses on energy economics, oil markets, and…
Dr. Hossa Almutairi is currently a Principal Fellow at KAPSARC, and her research focuses on energy economics, oil markets, and climate policies. During the Saudi G20 Presidency, she served as the Sherpa of Think20 (T20), which is the research and policy advice network for the G20. Additionally, she was the lead co-chair of the T20 task force, “Sustainable Energy, Water and Food Systems.” Prior to joining KAPSARC, Dr. Almutairi was a faculty member at the University of Wilfrid Laurier, Canada. Her research contributions have been featured in several reputable journals, and she was the co-recipient of the 2023 OPEC Award for the Best Energy Research Paper.
Expertise
- Energy Economics
- Oil Markets
- Climate Policies
- Behavioral Economics
Publications See all Hossa Almutairi’s publications
![Nudging Toward Sustainability: Behavioral Interventions in Saudi Arabia’s Residential Electricity Consumption](https://wscdn-01.kapsarc.org/wp-content/uploads/2024/07/pdf-242260-page-1.jpg)
Nudging Toward Sustainability: Behavioral Interventions in Saudi Arabia’s Residential Electricity Consumption
We investigate the extent to which OPEC has succeeded in its self‐stated mission of stabilising…
8th July 2024![Decarbonizing Saudi Arabia’s Residential Sector: Designing Behavioral Interventions for Efficient and Sustainable Energy Consumption](https://wscdn-01.kapsarc.org/wp-content/uploads/2024/06/pdf-238171-page-1.jpg)
Decarbonizing Saudi Arabia’s Residential Sector: Designing Behavioral Interventions for Efficient and Sustainable Energy Consumption
We investigate the extent to which OPEC has succeeded in its self‐stated mission of stabilising…
24th June 2024