DefiantDandelion on Nostr: OPEC is a cartel that sets the agreed quantities pumped from each country that is a ...
OPEC is a cartel that sets the agreed quantities pumped from each country that is a member of OPEC. The US is not a member of OPEC. We can choose to pump any amount we wish, we pump based on price. And Saudi + others oil is cheaper to pump and process than US oil. OPEC tries to restrict the amount pumped from OPEC members but members can “cheat” and break their commitments. Overall OPEC chooses a quantity of oil production that they believe will maximize their profits while not being so high as to not incentivize production in other countries for example the US. The “backyard” oil pumps and others kick in when the price gets high enough to justify the cost.
Published at
2024-11-29 14:49:34Event JSON
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