How does OPEC decides price of crude oil?????

Question

Do OPEC decide price through future market or just by the cost incurred in production ?

Answer 1

US top trade groups already demand an end to oil speculation, but Congress do not act and Media do not report

"Leading energy experts across the country agree that recent, unprecedented jumps in crude oil prices are due, in large measure, to rampant speculation in the energy commodities markets.”

“19 of the nation’s top trade associations, consumer groups and labor organizations, the coalition urges “immediate reform in the widely-speculative energy commodity futures markets.”

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Answer 2

OPEC does not decide the price of oil.  13 countries meet to decide the production of oil. they function as a monopoly. a monopoly can decide the price or supply but not both.  sometimes one or two countries do not agree with the decision and breaks the agreement. the US is not one of the countries that belong to OPEC it is against policy to set prices or supply.  when they set supply  down prices will increase and visa versa

Answer 3

The one where they make the most money.  They function as a monopoly on the oil market, so they produce less and charge more than the optimal societal cost just to line their pockets.  Whatever they can charge to make sure people still buy enough that they are making money.