The original article was posted on October 15th, 2010.
OPEC Members Seek $100 Oil to Counter Dollar Weakness
The 13 percent decline in the Dollar Index since June has led some OPEC members to call for oil to rise to $100 a barrel.
The U.S. currency’s weakness means the “real price” of oil is about $20 less than current levels, Venezuelan Energy and Oil Minister Rafael Ramirez said after yesterday’s meeting of the Organization of Petroleum Exporting Countries in Vienna. The group, which accounts for 40 percent of global crude output, left targets unchanged and called for greater adherence to quotas, which are being exceeded by a supertanker load a day.
“So far, the perfect price has been $60 to $80, and now they’re talking about $80 and $100,” said Sean Brodrick, a natural resource analyst with Weiss Research in Jupiter, Florida.
“This all tells me OPEC is quite happy with higher prices and quite unhappy with the fall in the U.S. dollar.”
Dr. Pinna says:
$100 oil means $5.00Â a gallon of gas .. in a country with almost 20% unemployment where the cars are huge and the distances between home and work are vast.
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