Balance the Oil Price for Profit and Demand

OPEC and OPEC Plus play a crucial role in maintaining oil prices, currently around $80, which is seen as optimal for maximizing profits without significantly dampening demand or spurring excessive supply. Historical context highlights the volatility of oil prices, especially during the COVID-19 pandemic, where prices fell dramatically due to decreased demand, even reaching negative values for some contracts. While demand for oil exhibits limited flexibility, supply is more adaptable, allowing producers to manage market conditions effectively.