How is OPEC a multilateral oligopoly?

Answer 1

OPEC is a collection of oil exporting countries. Oligopoly - Industry that is controlled by a few major players (firms or countries) Collusion - When industry leaders secretly agree to limit quantities of production. This will guarantee the colluders a higher price for their product OPEC meet to discuss the quantity of oil they will allow onto the world market. This is collusion. Because the OPEC members are the main suppliers of oil they are said to be an oligopoly

Answer 2

OPEC is not a monopoly, but the press likes to exaggerate its power by calling it a monopoly. Monopoly is defined as: "..a specific individual or enterprise that has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it." OPEC is made up of 12 countries and they do not control world oil production. Technically, they are an "Oligopoly," which is defined as: "a market situation in which each of a few producers affects but does not control the market." Monopoly just sounds more important, so people use it to make OPEC seem bigger and badder than it really is.