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Oil Prices Will Not Fall Says OPEC

Published 07/07/08 Jeff Bennett - Print Article
E-mail - editor@economyincisis.org

An increased output of crude oil by the Saudi producers is highly unlikely at this point as OPEC’s President Chakib Khelil believes supply equals demand, saying prices will not fall.

Khelil said the rising price of oil is directly due to an increase in Chinese and Indian demand and actions by the U.S. central bank – in 2007 – to bring down the interest rates, eventually leading to the dollar’s decline.

While prices rise, and are expected to reach as high as $170 a barrel by summer’s end, it is imperative to continue to reduce our consumption of oil and search for alternatives. We are simply providing the OPEC nations with the necessary dollars to slowly invest and buy-out America through their purchase of stocks, bonds and the treasury. Our demise is forming through the relied dependence of oil and the unfriendly Middle East.

Source Reuters:

OPEC President Chakib Khelil ruled out on Sunday an eventual oil price fall in view of strong Chinese and Indian demand, adding geopolitics and a weak dollar were behind the current spike, Algeria's APS news agency reported.

…

"He explained that the 'surge' in oil prices is 'linked to the August-September 2007 crisis in the United States, where the U.S. central bank took steps to bring down interest rates to activate the U.S. economy but these led to a devaluation of the dollar'," APS said.

"The minister also attributed the rise in oil prices to geopolitical problems, excluding a possible decline in prices in the future, given that strong demand exists from mainly China and India", APS reported.

…

U.S. crude oil hit an all-time high of $145.85 hit on Thursday.

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