Opec has lead the market in "black gold" for quite some time and is quite persistent to keep the momentum going in the area. Opec, since the 1970s has continually pushed all of its customers by trying to maximize revenue while trying to maximize price. Of course, this is something that any good business would strive for but has Opec taken it too far? Fear, Greed & A Barrel Of Crude informs us that gas prices per barrel rose and closed in New York today above $48 a barrel. Before we know it, I bet the price will reach above $50 a barrel and that means well on the road to $60. If this happens I feel quite confident that people will look for other means of transportation or at least development enginneers and others will look to create and perfect other means of giving a vehicle power.
Many countries are already rationing their investments in the area and planning for the future. Opec can clearly see that it walks a fine line to keeping everyone pleased. One Russian observer remarked, "We can assume that the oil prices will not go down in the near future because there are no indications of the coming seasonal drop in the demand for oil, in particular, due to a rather cold winter in the United States." We constantly hear complaints, or perhaps we complain ourselves, about the price for a gallon of gas. Well, things don't seem to be looking too bright in the future for this area. Opec has the strategy figured out: it tells traders one thing and sends false signals while surprising the market on the other hand. Will Opec go on with its greedy ways? Will the world market tolerate it? These are the questions that come to my mind.