According to a Breitbart article, OPEC will make substantial production cuts to lower supplies and stabilize oil prices. Oil has slowly dropped in prices to a more reasonable level so it’s not surprising OPEC will tighten the spigots to raise the prices again. Prices are currently around $70/barrel and OPEC claims their target price is $70-90 a barrel. I have to point out that they weren’t in as big a state of panic when oil was nearing $150/barrel, but they sure are now that it’s dropped back to $70.
Oil demand has lowered considerably due to the high prices and likely will continue to do so if the prices are again raised. This just further makes the case that the US needs a solid energy plan that includes both alternative energy development and drilling our own oil reserves. We need to get our own supplies that are independent of foreign suppliers until we are able to move away from oil to an alternative source.
Posted under Energy
Written by admin on October 18, 2008