The TIMES ONLINE have published a story by guest columnist and former editor of The Economist Bill Emmott on why, despite the barest of financial green shoots following the largest financial correction in a generation, OPEC are still restricting oil supply in an effort to raise the price of oil. Even with demand still down significantly the price of oil has doubled in the last 6 months and is seven times higher than just a decade ago.
We have previously reported that OPEC has made their intensions clear that they will not raise production until oil returns to $100 a barrel. The oil producers’ cartel has deliberately cut production by nearly five million barrels a day, which is more than the drop in global demand, to keep prices high.
Mr Emmott explains that if the cartel continues to over play it's hand the oil age will end, not because they run out of oil but because oil consumers run out of patience with greedy oil producers, and develop substitutes instead. We tend to think that this trend is already well under way, gathered significant momentum in September 2001, and is basically already unstoppable.
