On opportunities to achieve market equilibrium in the global oil market

Abstract

Subject. The global oil market has experienced qualitative changes caused by the introduction of non-market methods into its regulation system, like the use of embargo, setting a price ceiling, stiffening sanctions. These changes require new approaches to studying the oil market and identifying the opportunities for its development. Objectives. The study aims to develop tools enabling to analyze the latest trends in the market transformation and identify possible ways of its development, to determine stable market conditions, and analyze possibilities of achieving market equilibrium. Methods. The main method of research is mathematical modeling. The methodology involves typification of object, taking into account its latest changes, building an appropriate research model, and verifying its adequacy by applying to the analysis of previous stages of market development. Results. I constructed a game model reflecting the main features of the oligopolistic market of goods with saturated demand. The model helped determine the main features of possible stable agreements in the oil market. The paper establishes the correspondence of the results of model experiments and real stable conditions of the world market. Conclusions. The model is suitable to examine the current state of the world oil market. The study of recent non-market methods is possible by including consumer countries in the set of players in the model.