Skip to main content
U.S. Department of Energy
Office of Scientific and Technical Information

Conflict and cooperation in OPEC: some additional economic considerations

Journal Article · · Int. Organ.; (United States)

The central topic of this paper is that while all of the oil-exporting countries have a mutual economic interest in restricting supply and keeping oil prices well above competitive levels, they have substantial differences of interest concerning just how high prices should be and how great the supply restrictions of each individual producer should be. Recognition of these divergencies of economic interest does not assure low oil prices for the future, but it is an important ingredient for any complete political-economy analysis of OPEC and international oil prices. For example, it suggests that Saudi Arabia probably had good economic as well as political reasons for favoring lower rates of oil price increases than most members of OPEC, and that the current loose framework of cooperation among the oil exporters militates toward a lower price path for oil than if OPEC were to become a true cartel.

Research Organization:
Claremont Men's Coll., CA
OSTI ID:
5531474
Journal Information:
Int. Organ.; (United States), Journal Name: Int. Organ.; (United States) Vol. 33:4; ISSN INORB
Country of Publication:
United States
Language:
English