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OPEC
(redirected from OPEC Cartel)

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OPEC

Organization of Petroleum Exporting Countries
An international organization founded in 1960 whose members collaborate on the production and exportation of oil. Members meet several times a year to discuss oil prices and ways to bring them to an optimal level for members. OPEC has a great influence over the world's oil supply as the organization sets production quotas for member nations. Cutting production tends to result in higher oil prices while raising production tends to lower them. Many of OPEC's member nations are heavily reliant on oil to fund their economies and, as a result, tend to prefer high prices. On the other hand, other members (though the groups overlap) suffer high inflation rates when oil prices are too high. As a result, there is often tension between so-called "price hawks" and other members. See also: Brent blend.


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Now the Gulf kingdom, previously a vigilant enforcer of the cuts by the OPEC cartel that checked the sharp fall in oil prices last year, appears to be expanding its own oil flow again in exasperation.
My feeling" is there will be "no more cuts" to production when ministers of the OPEC cartel meet on Wednesday, Sheikh Ahmad Abdullah al-Sabah said as he arrived in Vienna ahead of the talks.
World oil prices tumbled below 45 dollars a barrel in Asian trade Monday after the OPEC cartel decided during a weekend meeting not to cut output.
 
 
 
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