it is an aliance of all countries that supply oil. that way they can raise the prices and you have no choice but to buy because there is no competition.How does OPEC control the price of oil?
Supply they control how much they will pump. So simple supply and demand equation the more oil there is on the market the less demand and the lower the price. But if the supply is low then demand is high and prices go up.How does OPEC control the price of oil?
they ';control'; it to an extent by regulating the supply available on the market. They strongly influence it but cannot totally control it because they cannot control all the supply and cannot control the demand. Member states of OPEC agree on a quota for their output so they do not flood the world with oil.
Saudi Arabia could drop oil to a ten dollars a barrel just by turning on the tap---they have that much supply available.
By being the guy with the oil you love to suck.
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