Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (47101)	10/19/2004 9:27:53 AM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

iranian.ws Fault lines within OPEC "Why the big "reservist" Saudi, Iran, Iraq and Kuwait should be worried about higher oil prices?" Oct 18, 2004, 22:06 Iqbal Latif Email this article Printer friendly page Oil above $50- And no one is even partying! During the first eight months of this year, the price of oil has risen to nearly $55 from just under $29. For the last 30 years, the price of oil has been the single most important determinant of the economy and the stock market. However, there is something amiss in this whole equation of the steep oil price rise. Whilst in the short term it provides opportunity, to me, in the long term, it sounds like a death knell for OPEC. As I recently explained to an OPEC country oil minister, oil pricing is a two-edged sword, which is hard to manage. Let it drift too low and quota-cheating necessitated by the single commodity- dependent economies of OPEC take the bottom of the oil prices like, oil at below $10; keep it too high, long term impacts are disastrous. Thus, rich oil nations like Saudi, Iran, Iraq and Kuwait are caught up in a quandary. They need to maintain oil at a price that helps them grow their single commodity dependent economy to a multifaceted economy, but at the same time keep new producers and threatening new tech advance out of the contention.