OPEC - a cartel beyond compare
October 12th, 2006 by ashish
OPEC is a cartel that is beyond compare. If a relationship similar to this existed in some country between different comparies, it would be broken up under anti-trust. However, here is a group that coordinates production quotas and prices and is yet accepted as a valid arrangement.
Does it not strike people as strange that the group looks at the price, and says that the price has falled too much, we should cut production. And at what price does it do this ? $25 or 30 ? No, at the price of $60 which is a major price level, at this level economies are actually hurting.
Maybe if the price remains at this level, then there will be lots of incentive to increase efficiency, look at alternative energy generating methods, try to find more oil, anything that would reduce dependency on the OPEC oil tap.
