The OPEC logo is displayed on a mobile phone screen in front of a computer screen displaying OPEC icons in Ankara, Turkey, on June 25, 2024.
Anadolu | Anadolu | Getty Images
The recent decision by the OPEC+ alliance to increase crude oil production by 548,000 barrels per day reveals a growing tension between government overreach and the realities of a free market. This group, dominated by heavyweight producers like Russia and Saudi Arabia, is stepping away from earlier voluntary cuts, exposing the flaws in centralized decision-making that often leads to inflated prices and a burden on consumers.
The OPEC Secretariat claims that this increase is in response to a “steady global economic outlook” and low oil inventories. However, this same entity has routinely manipulated production levels, distorting the market and making life more difficult for the average American. It’s a classic case of how corporate elitism can undermine personal responsibility and economic stability.
These eight nations, including Algeria, Iraq, and the UAE, have borne the responsibility of implementing production cuts totaling 1.66 million barrels per day, all while maintaining policies that are unsustainable in the long run. Such strategies only serve to place profit margins above the needs of ordinary citizens, who suffer the consequences of rising gas prices.
Initially, the plan was to boost output by a mere 137,000 barrels per day until 2026. This conservative approach quickly morphed into a tripled hike in May, June, and July as these nations sought to stabilize their profits without regard for the working-class families facing escalating burdens of inflation. The market does not benefit from such erratic policymaking; instead, it amplifies the struggle for those trying to make ends meet.
The summer spike in demand, coupled with global tensions such as the conflict between Israel and Iran, has only served to complicate matters. Instead of focusing on responsible energy policies that align with traditional values of self-sufficiency, these oil-producing nations are more concerned with their corporate interests than the economic wellbeing of everyday citizens. It is disheartening to witness this continued pattern of exploitation.
As of last session, crude oil prices reflected this turbulent environment, with futures settling at $68.30 per barrel for Brent and $66.50 for West Texas Intermediate. Such numbers bear witness to a flawed system, one that prioritizes corporate gain over individual prosperity. The disconnect between government actions, corporate elites, and the American people will only deepen unless there is a reevaluation of policies affecting energy independence and market functionality.
