OPEC

Brazil’s oil may destabilize OPEC, but not the US.

Indianapolis – Brazil’s recent announcement that it might join OPEC reportedly produced a lot of hand-wringing among the experts. According to CNN, “analysts” feared that putting Brazil’s big new oil finds under the Organization of Petroleum Exporting Countries’ banner would mean higher oil prices.

Just who are these “analysts?” Either they need remedial economics training, or they are grossly misinformed about how OPEC works.


First, in a petroleum-thirsty world, Brazil’s oil discoveries are good news. Any Econ 101 student knows that when you increase the supply of something, the price goes down