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Oct 7, 2022 · It was the first global oil shock. On Wednesday, the Jewish holy day of Yom Kippur, Saudi Arabia and its oil allies — which now include Russia in the Opec+ group — moved to upend the world’s ...
- OPEC Is Born
- Age of Influence
- The Rifts Within
- Tensions with The United States
- The Challenge of Alternatives
- Looking to The Future
OPEC was established in 1960 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela; its membership has expanded and contracted over the years. The original five sought to build a united front to respond to oil price cuts imposed by the multinational oil companies that controlled most petroleum imports into Western countries, as well as U.S. government...
OPEC burst onto the world stage in 1973. Late that year, Egypt and Syria launched a surprise attack against Israel, and the United States responded with a $2.2 billion military aid package to the Israelis. Led by the Arab oil ministers, OPEC retaliated with an embargo against the United States and a few other allies of Israel and began to cut produ...
OPEC’s power has waned amid divisions within the group. Some of these were driven by regional power struggles. Others were spurred by differences in opinion over strategy and target prices for the cartel. In the 1980s, OPEC conferences were typically characterized by disagreements between so-called price doves, who pushed for higher output and lowe...
Since 1973, OPEC has often had a rocky relationship with the United States. Every U.S. president since Nixon has advocated for energy independence, though economists continue to debate the merits of such a goal. Proponents say that less reliance on OPEC oil reduces the trade deficit and makes the U.S. economy more resilient in the face of oil price...
Most OPEC members view high oil prices as a short-term boon. However, those same high prices can spur importing countries to make investments in alternative fuel sources, a dynamic that is already underway. The most prominent challenge to OPEC today comes from unconventional oils, such as shale-based energies, that have become available through rec...
Vast reserves of U.S. shale oil have not completely insulated American consumers from OPEC-induced price swings. Changes in U.S. production levels are the result of dozens of private energy companies’ independent decisions, and it can take months before consumers feel any adjustments. That means when there are sudden changes in market conditions, O...
- Anshu Siripurapu
Sep 6, 2024 · The recent decision by OPEC+ to halt plans for increasing oil output underscores the group's ability to shape supply and stabilize prices. As long as OPEC controls nearly half of the world’s oil ...
Oct 20, 2022 · By Felicity Bradstock - Oct 20, 2022, 9:00 AM CDT. Tensions between OPEC and the U.S. have spiked in the last year, particularly after the decision by OPEC+ to cut oil production by 2 million ...
Apr 13, 2020 · A concession to Mexico, allowing it to curb production by a smaller proportion, meant the deal fell slightly short of the 10m b/d initially agreed on Thursday. Curbs of 9.7m b/d for the so-called ...
- Anjli Raval
Nov 20, 2023 · In 2021, OPEC estimated that its member countries accounted for more than 80% of the world's proven oil reserves. Because of the large market share, the decisions OPEC makes can affect global oil ...
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The embargo also brought the United States and other countries to the brink of a global recession. In 2020, during COVID-19 lockdowns around the world, crude oil prices slumped. After that development, OPEC+ reduced oil production by 10 million barrels a day, which is equivalent to about 10% of global production, to try to bolster prices.
