The Organization of the Petroleum Exporting Countries (OPEC) was founded in 1960 as an intergovernmental body. Currently it consists of 13 nations. OPEC nations are responsible for about 40% of global oil production, and they possess 2/3 of global crude oil reserves. OPEC coordinates with petroleum firms in order to manipulate the worldwide oil supply and price.

Since 1980s, non-OPEC nations such as the U.S. and the U.K. increased their oil productions, resulting in a decrease in oil price. Since 2014, the top three oil producing countries are United States (non-OPEC), Saudi Arabia (OPEC) and Russia (non-OPEC). In 2016, Saudi Arabia and Russia agreed to coordinate and cooperate in managing oil price.

Beginning 2020, as a result of the COVID-19 pandemic, oil demand and thus price fell. In March 2020, OPEC agreed to cut oil production and requested non-OPEC countries such as Russia to abide by the OPEC decision, but Russia did not follow. On April 20, 2020, the first time in history, oil price (of the future delivery of US crude) was traded at a negative price.

Given the information above, apply as many relevant course concepts as possible to explain (1) why the above happened and (2) what the implications are for a country or firm of your choice.