The effectiveness of OPEC and OPEC+ from 2009 to 2024: An empirical appraisal

Gil Montant

Resources Policy, 2025, vol. 103, issue C

Abstract: This empirical study focuses on the effectiveness of the coordination strategies developed in the oil market between 2009 and 2024 with a focus on the OPEC + oil cartel settled-up by the end of 2016. One uses various econometric techniques specific to panel data to assess the ability of oil producers adherent to OPEC and/or OPEC + to exercise an impact on the oil price. The study integrates the time horizon followed by oil producers in the definition of their collusion strategies. The analysis reveals that some coordination mechanisms were already present amongst the set of ten countries that will later adhere to the OPEC+ and this before the official set-up of this cartel. However, these strategies proved to be ineffective to exercise a significant impact on oil price in 2009–2016. In addition, the analysis suggests the existence of a significant link between the time horizon considered by a country and its incitation to conform to official production quotas. Thirdly, results indicate that both OPEC and OPEC + have been more able to impact the oil price in 2017–2022. The invasion of Ukraine by Russia in February 2022 seems to have disorganized the oil market, which explains a significant loss of influence of both OPEC and OPEC + on the oil price.

Keywords: Collusion; Cartel; Petroleum; OPEC; OPEC+ (search for similar items in EconPapers)
JEL-codes: C22 C23 C38 D43 L13 L71 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420725000716
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:103:y:2025:i:c:s0301420725000716

DOI: 10.1016/j.resourpol.2025.105529

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().