UBS - Economist Insights: Show and cartel

OPEC is the most notorious of cartels, but as a cartel it has not been that successful. Members regularly over-produce, forcing Saudi Arabia to drive the price lower to punish those who cheat. But OPEC is not the only producer in the world, and even with last week's failure to reinforce cartel discipline, their ability to control oil prices is shrinking. Paradoxically, pushing the price lower may make their job harder in the future, not easier.