“… It is important to note that OPEC did not have a huge monopoly over the oil market in 1973. They had 56% of the oil market, according to energyeducation.ca -meeting the US Department of Justice‘s monopoly threshold which is defined as a market share of greater than 50 percent. It was enough to manipulate prices to shock the oil market and create a shortage in global supply. Currently, OPEC (less Russia) will produce 33.7 million barrels a day in 2021, while Russia- according to Interfax International Information Group- produces 10.2 million barrels a day. That leaves OECD countries producing 43.9 m/bd – so currently OPEC plus appears to control about 54% of the market. Dan McTeague warns that currently “OPEC and Russia produce nearly half the world’s oil needs. That’s quite a powerful block at a time when western nations seem intent on killing this vital resource.” It’s interesting that a similar price shock occurred in 1979, as the Iranian Revolution and the subsequent Iran-Iraq War (1980-1988) restricted the supply of oil from Iran and once again created a shortage in global supply and doubled oil prices…”
