OPEC Members - Pros/Cons

1
OPEC Members - Pros/Cons

• PROS
• forum for discussion and decisions alleviates
  some potential for conflict
• organized effort reduces stress from a chaotic
  competitive market
• coordinates oil production policies, stabilizes
  the oil market 1
• also ensures a stable supply of oil for consumers
  1
• provides news and information flow (OPEC
  Secretariat) 1
• combined strength in the international market
  "greater than the sum of its parts
• CONS
• difficult to control members lacks an
  accountability mechanism
• may provide incentive for members to cheat
• loss of competitive potential of members as
  individual producers
• Saudi market share gives it the strongest
  position in the organization
• limited actual control over prices exerting
  influence detrimentally affects the oil market

1The Organization of the Petroleum Exporting
Countries (OPEC) Functions. lthttp//www.opec.org/
aboutus/functions/functions.htmgt