Globalization and the oil market: An overview on considering petroleum as a trade commodity

Document Type : Original Article

Authors

Energy engineering and physics department, Amirkabir university of technology, Tehran, Iran

10.22109/jemt.2021.276311.1285

Abstract

Today, the process of globalization and globalization of the economy is one of the most important issues in the world. In this process, the manner and rules of trade of some goods with a strategic international trade position are more important. Energy carriers, especially crude oil, are among these commodities that are considered strategic commodities in foreign trade. The inclusion of crude oil among the World Trade Organization commodities has raised various issues. Since the oil price in the market is affected by factors such as psychological factors and supply and demand, the inclusion of oil in the World Trade Organization will, directly and indirectly, affect these factors. Principles such as national behavior can directly affect crude oil demand. Also, the principle of quantitative restriction can directly affect the supply of crude oil. Besides, agreements such as the General Tariff and Trade Agreement, the Service Trade Agreement, and the Technical Barriers to Trade Agreement can influence engineering service providers' roles at various stages and move them toward competition.

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