‘Looks like OPEC is at it again’
Cartel back to its old habit
This title was part of a tweet posted by the American president in which he accused OPEC and Russia of being the main culprit for the increase in the oil prices, especially with the surge in oil prices to above $74 per barrel.
President of the USA is beginning to complain about the increase in the oil prices. His main concern is the increase in domestic gasoline prices which will affect the pockets of his own consumers in the USA in the coming summer season.
However, should OPEC be blamed or the current policy of the USA that caused the oil to rise to a higher scale? Or is it the daily threats of reintroducing sanctions on Iran which will lead to higher prices, as less Iranian oil in the market will lead to further shortage of supply to the international markets? Or is it the current foreign policy of the USA towards Venezuela that is causing its industry to produce less than 50 percent of its normal production?
Was it not OPEC’s decision of the last 14 months that made the USA one among the largest oil producers surpassing Russia and Saudi Arabia? Was it not from OPEC’s decision that the American oil industry is benefiting the most? From shale oil producers and oil servicing companies to domestic oil companies, all are generating profits. It has been benefiting the American economy in every aspect — from generating more taxes for the states to encouraging oil investments and creating more job opportunities. In addition, it has been rewarding for the American shareholders who can contribute more to the economy.
Keeping oil prices at a low level will lead to lesser investments in the oil industry which can cause a major shortage within the coming five years. Increase in oil prices will encourage further investments globally. Higher oil prices mean more purchasing power for OPEC countries, with more income and more money to spend; while ensuring benefits for USA commerce. With more income and less deficits, more weaponries and commercial airlines can be bought from the current administration, as its main policy is trade.
Yes. OPEC is back at it again, but for the benefit of all, mainly for the USA.