The Organization of the Petroleum Exporting Countries (OPEC) is celebrating the 50th anniversary since its establishment today. OPEC states account for 40% of global oil output and control 80% of the world's proven oil reserves, which constitutes the secret of the cartel's might.
Until the 1970s, the oil market was dominated by a seven company cartel comprising British Petroleum, Chevron, Exxon, Gulf, Mobil, Royal Dutch/Shell and Texaco. It was often referred to as the Seven Sisters.
These companies produced oil, purchased it from Third World countries, maintained refineries and sold oil and petroleum products. Their monopolist status enabled the Seven Sisters to pressure rivals from developing countries and to force them to reduce selling prices on a regular basis.
Oil states became increasingly inclined to pool their efforts and repel the hated Seven Sisters but were unable to come up with any feasible scenario in conditions of excessive supply.
Until the late 1960s, the United States was able to meet domestic demand at the expense of its hydrocarbon reserves. Consequently, oil-producing countries could think of nothing better than a price collusion.
RIA Novosti
