Solutions to the problems facing OPEC
Some of the solutions that have been adopted to curtail the problems of OPEC include:
(i) Members of OPEC have embarked on joint research in order to counteract that of the Western advanced nations to find substitute for oil.
(ii) The organisation always imposes cenalty on its members that side-track their agreed fixed production quota.
(iii) OPEC tries to maintain inelastic price by fixing production quota for its members.
(iv) The organisation has made and is making every effort to create unity among its members.
(v) In order to solve the leadership rivalry between Saudi Arabia and Iran, the organisation rotates its key posts among its member-nations.
(vi) OPEC tries to maintain a reasonable price in order to avoid price fluctuation.
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