Posted by
The Reality Show on Monday, July 14, 2008 10:22:54 PM
[Arab Muslim] OPEC's policies spurring price hike
OPEC's policies spurring price hike Dailyrecord.com, NJ - Jul 5, 2008
While it is true that the United States gets most of its oil from non-Arab countries, it is in fact the Arab oil-producing nations that are driving up the price.
He states that the "price of oil is dictated to a large extent by U.S. oil companies." That is not the case.
OPEC, the Organization of Petroleum Exporting Countries, is a cartel of 12 member nations, with all but one, Venezuela, a Middle Eastern country. A cartel is, according to the American Heritage Dictionary, a combination of independent business organizations formed to regulate production, pricing and marketing of goods by the members. OPEC has for the first time since its creation in 1960 been acting like a real cartel. Formerly, cartel members would ignore regulated production goals established and pump more oil. More oil meant more supply.
The larger supply would keep the price down worldwide. Now we are seeing member nations holding firm to established production goals. In other words, while everyone, including President Bush, is asking them to produce more, they are not. The cartel is working.
The concepts of supply and demand are not sexy, but they certainly apply to the price of gasoline.....
Read more at:
http://www.dailyrecord.com/apps/pbcs.dll/article?AID=/20080704/OPINION03/807040302/1096/OPINION