OPEC — the Organization of the Petroleum Exporting Countries — is often called the most powerful cartel in the world. Its production decisions directly influence the price of crude oil, which in turn affects what you pay for gasoline, diesel, heating oil, and jet fuel.
How OPEC Works
OPEC's 13 member nations collectively control approximately 35% of global oil production and hold about 80% of the world's proven reserves. By coordinating production quotas, they can restrict supply to push prices higher or increase output to bring prices down. Since 2016, OPEC has worked with 10 additional non-OPEC producers (notably Russia) in what's known as OPEC+.
The Saudi Arabia Factor
Saudi Arabia, as the world's largest oil exporter, holds the most influence within OPEC. The kingdom has the ability to unilaterally cut or increase production by 1-2 million barrels per day — enough to meaningfully shift global prices. When Saudi Arabia makes a voluntary production cut, oil traders pay attention immediately.