This Slides provides insight into how OPEC raised its price using collusive oligopoly strategy but could not keep too long!

2. “People of the same trade seldom meet together ,
but the conversation ends in a conspiracy
against the public, or in some diversion to raise
prices .”
Adam Smith from The wealth of Nations.

3. OPEC
( Organization of Petroleum Exporting Countries)
• Established in 1960
• Consists of 13 oil exporting nations
• Controls 75% of the oil reserves
• Goal is to maintain high oil price

4. OPEC AND THE WORLD OIL MARKET

5. What did OPEC do?

6. Conclusion
• Oligopoly firms maximize their total profit by
forming a cartel and acting like monopolist
• Self interest drives from cooperation even
when it is in their mutual interest