For OPEC, Gas is Still Too Cheap
May 27, 2009 by Mark Ellis
Filed under Business
Despite the economy slowly and tenuously attempting to rebound from the depths it has reached, OPEC seems to be intent on driving oil prices higher and higher. At $63.45 a barrel, prices are already the highest they have been all year, but OPEC has said that it is considering a price somewhere between $75 and $80 a barrel.
Image: Flickr
A sharp spike in oil prices has been supported by OPEC but strongly condemned by many economic analysts. OPEC contends that it needs to drive oil prices higher in order to spur energy investments, but analysts tend to agree that a skyward oil prices would eradicate any improvement in the delicate economic situation.
Despite OPEC’s apparent eagerness to send oil prices even higher, the organization will not take action until its meeting on Thursday to discuss policy. Until then, the rest of the world will just have to wait and see.
