We read at AI Overview that the price of oil before the embargo by the Organization of the Petroleum Exporting Countries (OPEC) of 1973-1974 was stable -- of which a barrel of oil was priced in the range of $2.50 to $3.00. So then, if we were to take the inflation rate from 1973 to 2026, that would put the pre-embargo midpoint rate of a barrel of oil in the range of $20 to $21. Yet we find that a barrel of oil is currently priced around $66 to $70, which is way above the inflation rate of that period. This would seem to suggest that the price of oil is still affected by OPEC, but we need to take into fair account the fact that OPEC isn’t what it once was, because the biggest producer of oil is currently the United States of America, and the current leader by a good distance for OPEC, is Saudi Arabia, which is a country that is basically in conformance with United States wishes, and at a minimum is a country that is in tune with America on a quid pro quo basis. In other words, while OPEC still exists and has a degree of power, it is not in the position though to dictate the price of oil, or even the availability of such, but rather the price of oil would seem to be in conformance of those that are in the oil business in which an argument could be made, that the price of oil in relationship to the costs to extract oil is significantly higher than what it should be.
The thing about oil is that it is an exceedingly important product because oil is what is utilized for transportation, petrochemicals, and electricity. So too, in the United States, the biggest producers of oil are not subject to governmental sanction but are major private-enterprise companies with an abiding interest in making a profit above all. This would seem to suggest that having a bogeyman, such as OPEC, to sell the illusion that it is OPEC that essentially creates or controls or heavily influences the oil pricing market, through the availability of oil, is actually beneficial for domestic oil companies as well as oil companies throughout the world, governmentally or privately owned, because it gives the excuse for the higher market price for that barrel of oil.
When it comes to the price of oil, the losers in this game are the consumers of that oil, in which it could be said that the price of oil to those consumers is a form of regression taxation, since those that can least afford a higher price of gasoline have little or no choice but to pay what the going rate is, or else their lives will be worse off. This would seem to indicate that the oil market as currently structured most definitely does not have two prices to a barrel of oil, in which the non-OPEC price is lower than the OPEC price, but rather there is just one basic price, which is in its form, quite beneficial and lucrative for the oil producers and it could be argued and should be argued, an overall price that is unfair to those that are dependent upon oil because that price does not accurately reflect the actual costs to extract the product, in which, it has to be said, that the ability to extract oil today is far superior and more efficient to what it was back in 1973, and therefore the profits so being made seem to reflect a global oil cartel.