How Does OPEC Influence Gas Prices?
Americans drive three trillion miles a year, equal to 820 trips between Pluto and the sun. The United States uses 178 million gallons of gasoline a day. A spike in gas prices affects everything from the cost of bread to the amount of taxes available for community needs. A sharp rise or fall, instead of more gradual movement, can have a huge impact on the world’s economy. Gas prices are largely controlled by OPEC, or the Organization of the Petroleum Exporting Countries, including Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela. Indonesia was a member of OPEC, but chose to suspend its membership in January of 2009. These 12 countries control 40% of the world’s crude oil supply. This puts OPEC in the unique position of having a lot of influence on the price of gas around the world.
