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The debate continued as prices rose still higher in 1978 and 1979 but subsided when they fell closer to historical levels in 1986. Conventional wisdom suggests that OPEC is a cartel, albeit perhaps a weakly functioning one, groping toward an optimal level of revenue. 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The market structure of the Organization of Petroleum Exporting Countries (OPEC) has been debated since 1973, when large price increases catapulted the organization into public attention. The debate continued as prices rose still higher in 1978 and 1979 but subsided when they fell closer to historical levels in 1986. Conventional wisdom suggests that OPEC is […]
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