OPEC drives up oil prices in a new way

The oil-producing nations’ fast-growing, subsidized economies and soaring consumption of petroleum are big reasons the rest of world is paying more for its crude.

…I fully expect oil prices to keep rising for the rest of 2007 and into 2008. The only thing likely to stop oil from climbing to $85 a barrel is profit-taking by speculators themselves.

Not every OPEC country is happy about this rise in oil prices. The Saudis, for example, have argued for increased production to hold down prices and keep demand from falling. But oil prices are headed up no matter what OPEC says or does.


And OPEC really doesn’t have anyone else to blame for its inability to set prices. Runaway demand in the oil-producing countries themselves is the newest factor pushing up global oil prices.

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