OPEC Cartel

[VenalWinfrey]

Hello. Can anybody please explain to me how OPEC operates legally as a cartel? My understanding is perhaps poor, but I thought that cartels were illegal. Is it simply because nothing can be done? Or perhaps that as the group encompasses many different countries, no legislation covers is?

Any advice on this greatly appreciated!!

[buildersmate]

Nothing can be done about it - that simple.

However the cunning plan by developed nations to engineer a global recession has really stuffed the OPEC members this time around. That'll learn 'em.

[Gromit]

The oil comes out of their lands so they can do what they like. The laws in Britain, the US and Europe forbid cartels as they are seen as anti- competative and bad for consumers. The oil producing nations in the middle east are more concerned with maximising their profits.

[kempie]

When you use the term 'illegal' you must consider to which jurisdiction you refer.

So where it may be true that business cartels which promote restrictive practices would be 'illegal' under British and EU Law (and similarly would breach US anti-trust legislation) etc. OPEC is a group of countries, each of which formulates its own law.

[kempie]

...all of which is a repeat of Gromit's post. Apologies.

[VenalWinfrey]

Thank you all for the answers!