Wednesday, June 8, 2011
OPEC has decided to keep its production output unchanged, defying market expectations for a production increase, which is driving up oil prices suddenly.
Nymex crude is now up nearly 2%, back above $100 a barrel, and Brent crude is up to $118. Both were down ahead of the OPEC news.
In an article in CNBC, Thomson Reuters writes:
OPEC talks broke down in acrimony on Wednesday (earlier today) after Saudi Arabia failed to convince the cartel to lift production, sparking a rebound in global oil prices...
The failure to do a deal is a blow for consumer countries hoping the Organization of the Petroleum Exporting Countries would take action to stem fuel inflation...
Seven — Libya, Algeria, Angola, Ecuador, Venezuela, Iraq and Iran — were opposed...wanting to keep production unchanged...
Why was Saudi Arabia pushing to raise production? Because, as Saudi Arabia’s Prince Al-Waleed bin Talal said, "We don't want the West to go and find alternatives, because, clearly, the higher the price of oil goes, the more they have incentives to go and find alternatives."
It's time to make alternatives available to us at the pump. The sooner we reduce oil's strategic status, the better. Please get everyone you know involved. All of us need to contact our representatives and urge them to co-sponsor the Open Fuel Standard Act. We have no time to lose. Click here for the best way.