It takes a price increase
There is a lot that we can do to curb speculation, but the claim that rising gas prices are not based on supply and demand is simply not true [“OPEC: No shortage of crude oil in market,” Business, April 19]. Speculators only magnify and quicken the effects of supply and demand.
In this case, the cutoff of Libyan oil was almost 2 percent of the world supply and OPEC’s spare capacity turned out to be a mirage.
Dick Burkhart, Seattle
Read more: The Seattle Times (April 25, 2011)
Top officials with the Organization of Petroleum Exporting Countries are meeting in Vienna Sunday, and are expected to make a decision about possible cuts in oil production to boost prices. The meeting is being watched closely by the USA and other industrial countries, with some officials warning new cuts and higher oil prices could keep the global economy mired in a recession.
OPEC members gathering in Vienna face a difficult decision. Many of the oil-exporting countries would like to see higher prices. But Saudi Oil Minister Ali al-Naimi says the global recession makes that difficult. ...
OPEC, supplier of 40 percent of the world's oil, will reduce oil production if necessary to support prices, Secretary General Abdalla el-Badri said. "I am sure if at the May meeting there is a need to cut, they will take that decision," el-Badri said Sunday. "In OPEC member countries, 35 projects have been delayed because of falling oil prices." Production cuts by the Organization of Petroleum Exporting Countries since September have failed to raise oil prices to the $70 a barrel sought by members as the global recession erodes demand. The average price in the first quarter was $43.32 a ...