OPEC in Crisis

The Organization of Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental organization of 13 oil-exporting nations that coordinate petroleum policies of member states. OPEC has exercised large control of the global oil market since its inception in 1960. However, it is now confronting major challenges, including changes to the global oil market and tensions between member states.
OPEC Price Wars
Since 2014, several non-OPEC oil exporters have expanded their production, increasing the global supply and lowering OPEC’s share of global oil production to 40%. OPEC responded by increasing its volume of oil exports to capture more of the global oil revenue and block out non-OPEC producers. Though unscheduled supply shortages have recently stabilized oil prices, many believe this price leveling is not sustainable.
Member State Tensions
OPEC’s decision to increase oil production has sparked internal disagreements. While most member states seek to reduce production to stabilize