Is OPEC A Cartel?

Even though the theory of cartels, especially international ones, is not fully developed in the literature, some characteristics can be detected that is found in every cartel. This study tries to find out the existence of these characteristics in six commodity cartels including OPEC. Also, it compares the Seven Sisters which was a cartel to OPEC. Even though other cartels are and have been more successful than OPEC, many sources use OPEC as a cartel example. Neither theory nor statistical studies fully support the popular use of OPEC as a cartel. This research shows that OPEC is composed of Saudi Arabia, the dominant world producer, and several sub-groups all of which have separate models that explain the behavior of each member. Mistakenly assigning the power of some members to OPEC has resulted in confusion about its behavior and its nature.