In recent months, OPEC has been played for fools by Wall Street while they insisted the unrest in the Middle East was justification for increasing prices. That simply isn't true.
The oil ministers of the MIddle East have a conscience and they know what the global market consumption is and they should be able to 'set policy' based in that history and the trend by the USA to reduce the need for oil and gas by pursuing alternative fuels, especially at the tailpipe.
OPEC should not be easily manipulated by speculators that could not care less how much of their profits actually go to the countries that OWN the oil fields. It is ridiculous.
Understanding the global consumption and where it is going, hopefully down in demand, should guide the OPEC countries in their production.
Wall Street Speculators should be irrelevant to the production of these countries. They are not reaping the profits Wall Street speculators are because they are not charging that high a price for the oil they produce. The outrageous speculation by Wall Street will never stop. They care less about people and the need so much as the money that lines their pockets. Their is an argument that oil producers should sell their oil not to the commodity markets, but, with CONTRACTS to refineries that will guarantee a price at the pump for consumers all over the world. There is absolutely no reason for OPEC to engage in commodity markets. They can open contract negotiations directly to refineries guaranteeing they receive the lion share of the cost of the oil while reasonable profits are made by refineries to the consumer. OPEC has the ability through contract negotiations with refineries to control the cost of oil directly from the oil fields and address production accordingly.
OPEC can set prices to consumers if they want to, they simply have to want to and take control of this entire mess. There seems to be little anyone else can do. If there is no cooperation at the refineries than institute an embargo until others deal reasonably with OPEC. I believe OPEC can control the quality of life to a globe of citizens seeing unreasonable 'goods' prices, including food, they just have to find the will to do it.
