December 14, 2010
OPEC nations kept crude oil production in check to ensure prices remained strong, a strategy that was in evidence as markets edged upward in response to the producer group's weekend talks in Ecuador.
Leading producer and Western ally Saudi Arabia sought to reassure consumer countries it would restrain price hawks within the 12-member Organization of Petroleum Exporting Countries as Venezuela led calls for prices to hit $100 a barrel.
Venezuela, Iran and other hard-line advocates for higher prices argued the prices could go beyond the current $80-90 level but Saudi Arabia ruled out moves -- including further output cuts -- that could encourage a further price spike. OPEC expects higher global demand in 2011 but won't change current oil production quotas.
I am really glad that Saudi Arabia is our ally and that they are keeping the more radical members of OPEC in check. With the fragile state that the economy is in, the last thing we need at this point is even higher oil prices.