OPEC's price hike may drop oil demand











I'm Sam Eaton for Marketplace.

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Let them raise prices, they'll be just digging a deeper hole for themselves. OPEC's existence is fulfilling its destiny as industrialized nations are beginning understand that it is fundamental not to depend on OPEC countries for energy. In the US both democrats and republicans apparently understand this, even if they have a different approach to it. The investments planed for the modernization of the electrical grid are an example of somebody, somewhere understanding that cars might be electrically (and not fossil fuel) powered regardless of the price of oil at some point. Some things, like airplanes will probably be fossil fuel powered for a long time though.

Despite the political highhandedness of Chavez, the arrogance of the rulers of Saudi Arabia and the dodginess of Iran's government(s), it's hard to blame the OPEC members for wanting to get some kind of grip on the price of oil. Oil's the one big stick they can wave around and, by that, get the rest of the world's attention. And get it they do, boy!

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