Replies

You have a different definition of the word control than I do. The only way OPEC controls prices is by setting the production of oil, thereby keeping supply down (and prices up). The demand for oil has gone up because the US, Chinese and Indian economies are growing. Also, no new refineries have been built in the US for many years. My daughter works for an oil company and trades oil on the commodities market. I suggest you do more research on the subject.

"You have a different definition of the word control than I do...My daughter works for an oil company...I suggest you do more research on the subject."

control: a : to exercise restraining or directing influence over : REGULATE b : to have power over : RULE c : to reduce the incidence or severity of especially to innocuous levels

I was thinking the same thing about you. Just because your daughter is an order taker for oil contracts doesn't mean you know $#!T.

OPEC is by far the largest supplier of export oil.

OPEC and FSU(Former Soviet Union) countries between them control over 80% of proven reserves of oil and gas. At end 2003 OPEC had 77% of oil and 50% of gas reserves and FSU had 8% of oil and 32% of gas.

They CONTROL the vast majority of the oil available on the market. THEY DON'T USE IT, THEY SELL IT.

The price of oil has gone up because the suppliers are artificially holding back supply. It's that simple.

The Far East (China and India) has only increase oil usage by ~2 million barrels a day in the last 10 years, according to the International Energy Annuals. This is not the reason for an increase in price. The proven reserves are there, it's just not coming to the market.