Wednesday, March 5, 2008
The Associated Press reports in this article that after meeting OPEC has decided it will not boostit's production, sighting the weak American market as the reason. OPEC believes that with a weakAmerican market, the demand in the second quarter will drop. We've mentioned several times inclass the mixed signals that America sends by saying that we want to reduce our dependence on foreign oil, especiallz Middle Eastern oil, and then we ask OPEC to ramp up its production. It will be interesting to see Bush's reaction after hearing the news and to find out what he'll say to OPEC. Maybe with high oil prices, and OPEC not ramping up production this will be enough catalyst to convince people to reduce their oil consumption. OPEC in the long run could be helping us a lot more than they know but not providing more oil and thus helping us to reduce our dependence upon them for oil. I say Thank You OPEC!!
Posted by durkeeam at 9:20 AM