Why Does OPEC Control Oil Prices?

The video discusses OPEC's formation, its influence on the global oil market, and its role in supply and demand dynamics. It highlights the economic and geopolitical impacts of OPEC's decisions, including production caps and their effects on oil prices. The video also explores the implications of OPEC's actions on US-Saudi relations and the broader geopolitical landscape, particularly in the context of Russia's actions in Ukraine.

What does OPEC stand for?

• Overseas Petroleum Exporting Committee

• Oil Producing and Exporting Coalition

• Organization of Petroleum Exporting Countries

• Oil and Petroleum Exporting Council

Which factor primarily determines the price of oil according to economic principles?

• International trade agreements

• OPEC's internal policies

• Supply and demand

• Government regulations

How did the COVID-19 pandemic initially affect the oil market?

• Boosted oil exports

• Increased oil production

• Decreased oil demand

• Stabilized oil prices

What was one of the consequences of OPEC's October announcement to cut oil production?

• Decrease in global oil prices

• Increase in US gas prices

• Improvement in US-Saudi relations

• Expansion of OPEC membership

Which countries are major buyers of Russian oil despite Western sanctions?

• India and China

• Japan and South Korea

• Germany and France

• Brazil and Argentina