Proverb Posted September 26, 2005 Report Share Posted September 26, 2005 (edited) I have been running around with my broken concept of OPEC for a while. I simply don't know enough and am assuming it is something it may not be. From little I know of it, it seems to me that it is an association that withholds supply of crude oil. This would not be unlike the policy with diamonds, "hold the product, hike the prices." Is this correct? Will someone offer a more educated evaluation of OPEC? Thanks All. Edited September 26, 2005 by Proverb Quote Link to comment Share on other sites More sharing options...
DavidOdden Posted September 26, 2005 Report Share Posted September 26, 2005 It stands for "Organisation of Oil-Producing Countries", which gives you a hint. Their purpose is to establish uniform policies for the (currently) 11 members, which have government-run petroleum industries. They may either increase or decrease production, depending on political and economic factors. De Beers' CSO is much more successful than OPEC (note that OPEC has only 11 member nations). Non-OPEC production is equal to or higher than OPEC production, which limits the impact of OPEC withholding supply. Quote Link to comment Share on other sites More sharing options...
AisA Posted September 26, 2005 Report Share Posted September 26, 2005 A minor correction. OPEC is the Organization of Petroleum Exporting Countries. Quote Link to comment Share on other sites More sharing options...
DavidOdden Posted September 26, 2005 Report Share Posted September 26, 2005 A minor correction. OPEC is the Organization of Petroleum Exporting Countries.I have no clue where my brain was. Clearly, I was thinking of OOPC, a very secret organisation. Quote Link to comment Share on other sites More sharing options...
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