Trump on oil, Big Red Car?
We woke this morning to a Tweet from our Tweeter-in-Chief picking a long overdue fight with OPEC. The Organization of Petroleum Exporting Countries was formed in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
Currently, it is composed of Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emerates, and Venezuela. Sudan has applied to join. Indonesia was once a member.
[See what odd bedfellows a bit of oil and money creates?]
There is an “observer” class consisting of Egypt, Mexico, Norway, Oman, and Russia.
OPEC produces about 44% of the world’s oil while holding 73% of the world’s proven oil reserves.
OPEC exists to manipulate the price of oil by controlling the level of production thereby driving prices up through artificial scarcity.