When...are "you" going to "wake up"?

Dien,

Thanks for the Three Reasons oil prices are so high.

Unfortunately, they are not 100% right.

First, let me quote from Opec's website...

OPEC's mission is to coordinate and unify the petroleum policies of Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital to those investing in the petroleum industry.

"...coordinate and unify the petroleum policies of Member Countries"

Sounds like Collusion, price fixing and a Monopoly to me.

"ensure the stabilization of oil markets"

Yes, so the various producers do not Compete with each other - which is True economics 101.

"secure an efficient, economic and regular supply of petroleum to consumers"

Efficient? Doubtful. When something is a Monopoly there is no Pressure to become efficient.

Regular Supply? Like the regular supply of bread, for instance, in Communist USSR. Regular doesn't mean... adequate or more than enough. It just means... a regular supply of an Amount Opec deems is enough.

Now. It is true that in Economics, price is a Reflection of Supply/Demand. And in true economics there is Competition.

However, in the case of Oil, those rules do not apply. Because the entire thing is Rigged.

Opec dictates the Amount of oil Supplied. And increases and decreases supply at will. How many times have we heard things like... Saudi Arabia has decided to help ease things and has Increase Supply by 8 million barrels a day.

Other countries - like has been pointed out, Australia and the USA - have their own Supply but Choose not to tap into it.

Countries choosing not to tap into their oil. Opec being a Monopoly and arbitrarily dictating the Supply.

Things like China's and Inidia's desire for oil, while real, are really a Ruse designed to throw the focus of the true culprits in this Con game.

"a steady income to producers"

Guaranteed by dictating the amount of oil supplied.

"a fair return on capital to those investing"

FAIR being determined by Opec.

In any Normal business, businesses joining forces to Dictate prices is frowned upon and Govt agencies jump up and down, court cases are filed, etc. But with Opec, there is silence - from the Politicians and the media. Instead, China and India are blamed for their Increased Desire for oil. And war is blamed.

All the while, the oil being traded in $US is making some people in the banking industry a LOT of money. And, as mentioned, a LOT of tax is collected.

Now. To Opec's credit, they do pass the blame. As this Graph shows...



The people of England are being Stitched Up, as we say in Oz. Of course, their Pollies will justify it in some way. But the man on the street knows it's all a crock.

Michael Ross