What’s the rationale behind this? The article didn’t clear it up for me.
OPEC gives oil producing nations collective bargaining power and protection from economic coercion. Kind of like a workers union. OPEC uses this to fix a higher price for oil and keep it stable. However, it comes with obligations to charge particular prices whether you want to or not. Like union dues. It also dramatically reduces competition between members. Competition is wasteful on resources, labour, marketing etc.
A breakaway member can make more money by making quick, direct deals with other states even if it’s not in the best interest of the union, compete with and undercut other OPEC nations, ext. Stability goes down, profits go up. Another way to describe OPEC is like a drug cartel, same principles.
To be clear, OPEC bad, unions good.
Comparing this to trade unionism is sadistic.
I mean it kind of is, but from the other side, if the corporations unionised against workers.
The word you are looking for is cartel
