Iran wants to squeeze U.S., others on oil prices


Iran has not been a friend of the U.S. for a long time. It went a long way to prove that by calling on OPEC to tighten the supply of oil to a level at which prices are high enough so the crude producers can make some extra cash.

According to Reuters, "Iran's oil minister renewed his call for OPEC to cut production when it meets later this week, saying this was the only way to prevent crude prices falling further." Other media sources said Iran actually wants to drive the price of crude back up.

The rest of the OPEC members may want to give the proposal some thought. Higher prices may bring them more profits in the short term, but if the west and China are pulled into a deep recession then demand for oil could fall very quickly. Pushing up what is being charged for such a critical commodity would make the downturn even worse.

OPEC may not care about its image, but it should be concerned with its own long-term income.

Douglas A. McIntyre is an editor at 247wallst.com.

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