Why is it acceptable for the oil industry to act like a cartel?

Simply because there are no international laws that preclude cartels from happening. Fortunately the OPEC oil cartel can no longer effectively set oil prices artificially high due to the rise of USA shale oil fracking. This has permanently defanged the OPEC oil monopoly. read more

The oil industry does not act like a cartel. It’s fiercely competitive. There are hundreds of private oil companies around the world and, once you get to the US there are thousands. Each wants to make as much profit as possible. They all balance production and price to benefit themselves, without regard to the others. read more

Now with shale oil at $40-$70 to produce it is not cutting production. We may see a limit in the 50's since shale oil is there and can be brought out at certain price points. The fact is that cartels rarely last. read more

Cartel agreements are difficult to maintain because individual members Are often unable to police the price and output policies of other members In order to make oil profits as large as possible. read more