Damien Phillips

Opec’s split is good for the West

It largely slipped under the radar, but there was a rare bit of good news for hard-pressed consumers and businesses this week: the next meeting of Opec+, originally scheduled for today, has been pushed back almost a week amidst rumours of splits between its members.

Most people struggling with inflation and the cost of living probably don’t look for salvation in the depths of the international and business pages. Few organisations cast a longer shadow over economic life in the West than the Organisation of Petroleum Exporting Countries (Opec) and its tag-alongs in Opec+.

Ever since it was first established in 1960, the purpose and mission of this organisation has been to coordinate global oil production in the name of fixing prices. In this, it has been extraordinarily successful: with the exception of a worldwide production glut in the 1990s and 2000s, it has been able to keep oil artificially expensive since 1974.

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