Opec
Amongst all of this and forever looming large – or at least attempting to – is the Organization of Petroleum Exporting Companies (OPEC) comprising Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Venezuela and, most importantly, the UAE and finally Saudi Arabia.
Whilst cartels are effectively outlawed globally, this one operates quite openly and freely with stated aims and price bands that it wishes to achieve. As non-OPEC supply of oil has shot up, so OPEC’s effectiveness in controlling the markets has diminished. There are certainly times when it is able to tighten weak markets through the compliance mainly of Saudi Arabia and the UAE, but it proved entirely impotent during the 2008 rally that appeared to be indicative ...
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