ABSTRACT
Until 1973, pricing on the world oil market was largely dominated by the Major seven producers (Shell, British Petroleum, Mobil, Standard Oil of California, Gulf, Texaco, Exxon).
The landmark change we recognize was on 16 October 1973 when OPEC decided to increase the price of crude petroleum first by 70% and later by several times over. This reflected a shift in market control from the ‘major seven’ to the major petroleum producing countries. One other market development was the instigation of a spot market for crude petroleum for transactions involving contracts of a longer term. The resulting prices formed on this market have became an independent indicator of crude oil market forces. These prices also have fluctuated widely, interesting consumers and producers alike in the prediction of future price movements.
