Search This Blog

Saturday, October 1, 2016

The Death of OPEC

The Death of OPEC
Anas Alhajji is an energy economist and the former chief economist at NGP Energy Capital Management
IRVING, TEXAS – The Organization of the Petroleum Exporting Countries is dead. Saudi Arabia killed it. Now, OPEC is just a toothless zombie, attracting attention, but without having any impact on the living.
Few have noticed OPEC’s demise for a simple reason: it never really had the impact that it was widely perceived to have. It was never actually a cartel, possessing monopolistic market power. Anyone who thought otherwise was mistakenly attributing to it Saudi Arabia’s market power.

No comments: