Quote:
Originally Posted by jcwang
Do we see people waiting in line at gas station anywhere around the world?
There is no shortage of oil production, the OPEC is using that as a big excuse and so does the future tock market of oil. With all that money OPEC nations is making, I will not be surprised that they are the one manipulating the future price of the oil.
|
There would actually be increased demand, and decreased production.
But you are correct in saying that it will ONLY be, if OPEC is NOT price fixing. If OPEC were operating as a monopoly, then the laws and supply and demand would be entirely different. However, I have not really seen proof that OPEC is a monopoly, and that is above the fact that they do not control all of the oil production. I therefore do not consider them to be a true monopoly, and price fixing by the government would still have a shortage inducing affect.
-