One of the results from the formation of OPEC in 1960 was that
A) the prices of oil are set by governments and not petroleum companies.
B) prices remained very constant between 1960 and 2014.
C) the United States would reduce their dependency on Canadian petroleum.
D) the prices of oil are now determined purely by market forces.
E) the petroleum corporations from the developed countries could stop their exploration of new oil reserves.

Question

Quizplus · Accepted Answer

One of the main goals of OPEC was to take control of the pricing of oil, which had previously been determined by Western petroleum companies. OPEC became a cartel that coordinated the setting of prices and production quotas for member countries, giving them greater leverage in negotiations with non-OPEC nations. This led to a shift in power from oil companies to governments, and OPEC became known for its ability to influence global oil prices.

One of the Results from the Formation of OPEC in 1960