Is the idea of an organization of petroleum consumer countries (OPCC) nonsense?

Question

Supply and demand dynamics only work when a market is atomized and there are many players. But if there is only one seller (Opec) and one buyer (Opcc) bidding in the name of all consumers, the price of oil could be set almost by decree.

Answer 1

The price of oil depends on what country it is being distributed to. Inflation could be the cause for high prices in one country but not in the other. There is also the factor of how much oil the consumer is drilling. And lastly supply and demand make up the biggest factor because it affects everyone.

Answer 2

The idea of a single entity to represent the demand side of the equation, an OPCC, isn't nonsense. If a single buyer and seller were set to hash out the price it would be simpler. Its actually a novel idea -- if supply and demand were equal.

The supply side can be manipulated. It can increase or decrease easily.

But the demand side doesn't have that flexibility. There would obviously be an advantage in buying in bulk. But if country A needed oil worse than country B ( say US v. Canada ) then it would be hard to negotiate in everyone's best interest.

Nonsense, no. Unlikely, very much so.