8 problems facing OPEC

8 problems facing OPEC

Some of the problems of OPEC are as follows:

(i) One of the problems facing OPEC is the declining loyalty of its member-nations which has made it difficult for the decisions of the organisation to be obeyed.

(ii) The present challenge and competition posed by non-OPEC oil producing nations like Britain, Mexico, Norway etc. give OPEC a serious food for thought.

(iii) OPEC is also faced with the problem of its member-nations side-tracking their agreed and fixed production quota.

(iv) The world economic depression which brought about fall in oil price affected OPEC drastically.

(v) OPEC is also faced with the problem of increasing research by Western advanced nations to find substitute for oil.

(vi) The activities of the advanced nations in stockpiling oil which contributed to the fall of oil price is causing great concern in OPEC.

(vii) Political disagreement which sometimes leads to war between member-nations, like Iran and Iraq war, causes a serious problem to OPEC.

Also read:  Gross Domestic Product (GDP), its formula and components.

(viii) The rivalry for the leadership of the organisation between Saudi Arabia and Iran is a big problem to OPEC.

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Somtochukwu

I am a public speaker πŸ”Š and a writer.

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