Analysts agree that low stocks of gasoline in the United States ahead of peak summer demand are leading prices now. But they say OPEC has helped create the conditions for an overheated market by restraining supplies so tightly that crude stocks are failing to rebuild as normal during the second quarter, the seasonal lowpoint for demand
meanwhile, at the OPEC website we read the following:
The OPEC MCs coordinate their oil production policies in order to help stabilise the oil market and to help oil producers achieve a reasonable rate of return on their investments. This policy is also designed to ensure that oil consumers continue to receive stable supplies of oil.
well they do a fine job of stabilizing oil supplies and prices for the benefit of us consumers...
on the other hand, why not get rid of OPEC? in the era where free markets are fashionable, shouldn't the oil market follow suit and get rid of a cartel?
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