From Religare:OPEC an irrelevance: OPEC historically protected against price drops and never had a stated aim to lower excessive prices. In recent years, rising oil prices have allowed OPEC nations to pay down debt and accumulate substantial reserves. The market narrative has also shifted to one of structurally higher demand, lower production and increasingly tight energy markets. This has lowered the impact of the Saudi stance that higher oil prices could lead to energy substitution and damage global growth. Increasing NGL and Russian production and a substantial increase in strategic and commercial reserves have also lowered its importance.
Translation: Higher prices obviate the need for a cartel, and its members that have actual weight no longer have any power.
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