why oil-buying countries did not form a counter-cartel to OPEC+?
In: 0
Simply put:
You buy oil, burn it, and use the power to move your economy. You can’t decide to buy more from the oil cartel, you can only retaliate by buying less. And buying less means you have to shut down some industry and services that run on oil, making way more damage to you than effect on the cartel. The cartel can always sell to someone else, or even not sell and wait, without massive repercussions.
That’s why industry nations generally bomb the resource nations into submission. That’s gonna affect the resource nation more than the bombing nation.
Simply put:
You buy oil, burn it, and use the power to move your economy. You can’t decide to buy more from the oil cartel, you can only retaliate by buying less. And buying less means you have to shut down some industry and services that run on oil, making way more damage to you than effect on the cartel. The cartel can always sell to someone else, or even not sell and wait, without massive repercussions.
That’s why industry nations generally bomb the resource nations into submission. That’s gonna affect the resource nation more than the bombing nation.
Latest Answers