Sunday, October 19, 2008

The deal with oil prices?

Why is it that we can't just enjoy lower oil prices. With a recession on the horizon and demand diminishing it would be nice to enjoy the lower oil prices this would afford us all. However OPEC has different ideas. By cutting back supply they can increase oil prices. This would artificially raise oil prices. Now I know OPEC's cartel is no hidden secret. What I don't understand is how countries like the U.S. don't do anything about OPEC. With lower oil prices the power hungry U.S. economy might recover quicker. Having higher oil prices prolongs the recession. Score one for OPEC and greed. From an environmental perspective however higher oil prices = hopefully less driving+ more incentive to work on renewable sources. So in the long run OPEC might shoot themselves in the foot and make oil prices irrelevant, here's hoping I live to see those days.

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