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What is the structure of the world oil market?
The oil industry is a large and fast depleting industry. The main market oil producing countries and organizations such as Opec and Opec+, and a few other non-Opec countries indicate that their current production rates (reserves) are slowly being eaten up. This is shown by (graph 1)
The structure of the world oil market is set to be oligopolistic as the oil market is dominated buy few suppliers, such as Opec and Opec + and the North Sea. For a industry to be classified as an oligopolistic industry it has to have a few large firm which hold a very large amount of output, also the firms mus…
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