
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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Reader Comments (Page 1 of 1)
10-19-2008 @ 5:04PM
Larry said...
We got ourselves in this mess by not drilling in the US and conservation of oil products. As far as Iran goes, we have Iraq so we should start using all Iraq oil we can from Iraq, and pay them a reduced price for it.
Then we should Drill Drill. once OPEC figures out we do not need their oil any longer, we could produce enought energy maybe we could sell to China, that way OPEN would lose their next biggest customer.
10-19-2008 @ 5:08PM
delmerti8 said...
LET US GET OUT OF THAT WAR ABRING OUR TROOPS BACK NOW! NONE OF THOSE PEOPLE OVER YHERE CARE ABOUT US ONLY TO SCREW US !
10-19-2008 @ 6:55PM
NUKEM said...
ISREAL should go and NUKE THE CRAP out of IRAN now,Dont be chickens,Do IT NOW!....
10-19-2008 @ 6:56PM
al said...
The US must get into conservation and reward using less oil. We only get about 15% of our oil from the Middle East and we sell our oil from Alaska overseas. That was supposed to make us energy independent. Drilling now won't produce any oil for 6 - 8 years. The oil companies won't build or improve their refineries anyway because that would reduce profit by increasing product. So have more crude isn't the answer anyway
10-19-2008 @ 9:01PM
douglas said...
dont worry Iran why your new friend obama-jimmy walker-smile-will-be-right-by-your-side. he said so -i-will-stand-with-the-muslims-should-the-political-winds-shift-in-an-ugly-direction.DEMRATS!!!!!!!!!
10-19-2008 @ 9:17PM
Gary said...
If permits are granted and not tied up with the greens, oil can be flowing from the wells in 18 to 24 months after equipment delivery. The refineries issue is a little more difficult but it's certainly not the oil companies, who've had dozens of applications for refinery expansion or new sites shot down by the greens. If the greens want to live like hunter gatherers, please do but let the rest of us get on with it.
10-19-2008 @ 10:27PM
moonie said...
My opinion some might not like it but like it or not this is proof were all idiots if we dont get independant from, foreign oil if it was left up to Iran we would be paying $10 for a gallon of gas. When are we going to stop being totally idiots and get off foreign oil?We have trillions of cubic feet of natural gas alone.We have the worlds largest amounts of coal.Drill drill drill our own oil or just stay idiots for the world to laugh about! duh!
10-19-2008 @ 10:53PM
moonie said...
Folks this is scary we gota get off oil whatever it takes what if opec feels the same as Iran> we are way too vulnerable how long are we going to be idiots to foreign oil HOW LONG?HOW LONG ARE WE GOING TO BE SLAVES TO OIL???
10-19-2008 @ 11:26PM
TREE HUGGERS GO AWAY said...
TREE HUGGERS MUST GO. IF IT WERE'NT FOR TREE HUGGERS THE WORLD WOULD BE A BETTER PLACE. EVERY TIME A TREE HUGGER GETS ON A MISSION IT ENDS UP COSTING THE REST OF US EVERYTHING WE WORKED FOR TO SURVIVE. DRILL DRILL DRILL. WE CAN USE OR BUILD NEAR THE WATER BECAUSE IT MIGHT POLLUTE IT, WE CAN'T DRILL BECAUSE IT MIGHT POLLUTE THE SURROUNDING AREAS, WE CAN'T BURN THIS OR THAT BECAUSE IT POLLUTES THE AIR. WELL WE CAN'T AFFORD TO LIVE ANYMORE NOW WHAT DO WE DO.
10-20-2008 @ 12:05AM
mauricio lopez said...
Drill Baby; Drill and let's become energy independents & make Agmadenayah & Chavez drink their Freaking Oil!!!!!
10-20-2008 @ 3:08AM
gumbo koontz said...
Doug
Wear your thermal underwear... it is not only intended for skiing ... It is warm and comfy in your daily train commute... It gets cold in trains early in the mornings... I wear thermal underwear all the time .during wintertime and I turn down my thermostat way down...Do you , too? dont worry about Iranians !! America is using one quarter of world's oil output!! America is not gonna waste oil in order to prosper!! Prosperity begins with your thermal underwear!!! Jimmy Carter in his famed "wear your sweater and turn down your home thermostat" forgot to add thermal underwear!! It is commonsense!!! Big Oil stocks is coming down hard and we want that and like that very much... You go sell your Big Oil stocks now!!
10-20-2008 @ 8:36AM
wart wittman said...
So we shouldn't drill for oil because it will take 6 to 8 years to receive results? With that philosophy then maybe we shouldn't invest money in mutual funds for future retirement. We shouldn't send our kids to school to enhance their future. It's a waste of time to plant a tree. We shouldn't waste our time looking for a cure for AIDS. That stuff can't happen by next week so we should bury our head in the sand, and embrace our fate that OPEC is the only force in control of the oil commodity prices. Is it just a coincidence that when oil supplies are abundant in the U.S. that the price drops world wide? OPEC can only charge what the market can bear. I think we should use less oil, but we also have to admit to ourselves that alternative solutions are more than 6 or 8 years away from being developed on an affordable scale.