Actions of countries actively participating in the global crude oil market in terms of the geopolitical changes in 2020

Abstract

PURPOSE: The main purpose of this article is to present the activities of countries actively participating in the global crude oil market, which have a key impact on economic processes on a global scale. The actions of OPEC countries use crude oil as an instrument in the international economic policy to influence changes both in the global economy and the geopolitical dimension. It is important to identify and discuss the events that provided a benchmark for OPEC+ countries to take actions on the global oil market in 2020 to try to change the share of the global oil market in an geopolitical aspect. DESIGN/METHOD: The research methods used in this article are the critical literature analysis and numerical data analysis. In this study, the author presents the statement that resource-rich countries increasingly treat crude oil as a tool in the economic policy to influence changes in economic processes on a global scale in order to increase their competitive position, as well as to deliberately create the negative phenomena in a form of price wars that only serve to achieve the set goals in the economic policy of these countries. RESULTS/FINDINGS: The obtained research results-reveal that conscious creation of price wars, the occurrence of oil crises on the global oil market, or the possession of significant deposits of the raw material in question, are treated by the governments of countries worldwide as a tool in itself in order to conduct the economic policy of countries, taking into account the overarching aspect of the broad impact on the manner of conducting the international economic policy of countries on the global oil market. The world the oil market experienced several significant events that caused strong changes from the point of view of the development of the world economy. Decisions held within the framework of the OPEC (and OPEC+) organisation have a narrower impact on the global oil market, however, within a wider global economy they affect the global economic processes. In conjunction with the Covid-19 pandemic, the policy of OPEC+ organisation is affecting the geopolitical changes and the foreign economic policy of every country in the world. ORIGINALITY/VALUE: The contribution to the development of the discipline is the presentation of the events and activities of countries actively participating in the global oil market in 2020, as an attempt to gain a competitive advantage and changes in the geopolitical aspect. KEYWORDS: oil crisis, OPEC, OPEC+, foreign economic policy, demand shock, supply shock. JEL: F13, F42, F6