Could a cartel of large energy consumers cut oil and gas prices?

A protest against the rising cost of living in London. Draghi suggested the idea of creating a ‘cartel’ of oil consumers to counter rocketing energy prices. Photograph: Thomas Krych/SOPA Images/Rex/Shutterstock

Energy prices are skyrocketing as the world confronts the economic ramifications of Russia’s invasion of Ukraine, supply chain bottlenecks and the lingering effects of Covid-19 lockdowns. But Italy’s prime minister, Mario Draghi, has a plan.

The celebrated former European Central Bank president recently broached the idea of creating a “cartel” of oil consumers at a meeting with Joe Biden. Just as the biggest oil-producing nations club together through Opec to agree annual oil production quotas, Draghi has suggested big energy consumers join forces to increase their bargaining power.