Opec The oil-producing states may wonder whether demand will keep pace. The American economy is slowing again, after two years of the most tepid kind of recovery, and a drop in demand combined with production increases could cause prices to collapse. The uncertainty in the West’s largest economy makes a wait-and-see attitude more prudent, although the inflated prices are also a boon to producers. This decision puts even more pressure on President Obama and his administration.
High gas prices have created real financial pain for the working and middle classes, which has cost him significant political support. An increase in supply would have pushed spot prices down, at least temporarily, allowing the political pressure to ease off the White House and encourage consumer demand in other industries. This decision assures that high prices will continue for the next few months, and possibly longer if OPEC still refuses to raise production at its next meeting.
OPEC cartel to go through the contortions of whether or not to increase production when the price is already far beyond what they dreamed of just a few years ago, and given the damage this price is doing to the world's economy, bespeaks of a fundamental abandonment of sovereign responsibly. It is tantamount to laying landmines through the length and breadth of the world's factories, threatening its workers and its economic well being, all the while hiding behind perverse interpretations of sovereign rights as if those rights
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