The Big Question

Does Opec have too much power, and is it to blame for the high price of oil?

Why are we asking this now?

As consumers continue to encounter rising living costs and higher prices at the petrol pumps, Gordon Brown has heaped some of the blame on Opec, the cartel of oil producing countries which produces around 40 per cent of the world’s crude oil. He criticised Opec for holding back oil supplies and allowing the price of oil to skyrocket. Chakib Khelil, the current president of Opec, has already ruled out increases in production any time soon, arguing that there is no sign of a shortage. In the meantime, the price keeps going up. Oil hit a new high of $129 a barrel yesterday, and even Opec ministers have predicted that it could reach $200 (

But while it may seem like Opec has the world over a barrel, other factors are at play. Some would argue that Brown’s attack contains more than a hint of wishful thinking. After all, it is much more reassuring to think Opec is holding back the supply of oil, than to believe that the world’s oil fields are simply running dry. If the latter is true, there would be little Opec could do to tackle high oil prices.

Independent