Sovereignty in the global economic order: Histories of OPEC

Abstract

This critical review discuss the history of the Organization of Petroleum Exporting Countries (OPEC) through the lens of national resource sovereignty and its place in the evolving global economic order. Drawing on historical accounts and economic analyses, the study methodologically contrasts insider narratives that emphasize anti-colonialism and self-determination with outsider perspectives focused on price-setting and cartel behavior. The analysis traces OPEC’s trajectory from its sovereign aspirations in the 1960s and its economic clout in the 1970s, to the erosion of cohesion under market pressures in the 1980s and 1990s. The shale oil revolution further challenged OPEC’s relevance, revealing limitations in collective action and pricing power. While Saudi Arabia emerged as the de facto dominant producer, other members often prioritized national agendas, eroding OPEC’s unity. Ultimately, the paper reframes OPEC not merely as a price setting institution, but as a dynamic organization shaped by the interplay between sovereignty ideals and global economic forces. This dual perspective shows that the powerful struggle for national sovereignty and liberation from colonial rule in the Middle East was ultimately undermined by the pressures of competitive market forces.