Russia Considering Joining OPEC

“I would like to say that we are prepared for this [joining OPEC]. We must defend ourselves, since this is our revenue base, both from oil and gas. These kinds of defensive measures could be tied to lowering oil production, and participating in the existing suppliers organization, and participating in new organizations, if we can come to an agreement beforehand, so to speak.”

Russian President Dmitri Medvedev

If Russia does join OPEC, Europe will be even more at the mercy of Russia, since it buys much of its energy resources there. It could have costly consequences for Europeans who like to drive or stay warm in the winter.

Crude Tumbles Pre-OPEC Meeting

Crude oil prices have dropped today in anticipation of disagreement and turmoil at the OPEC meeting Saturday. What a timely tumble!

Click here for a story in the Washington Post on OPEC's inner conflicts.

OPEC Cuts Oil Production

With oil at still more than $100/barrel, OPEC's oil minister, Chakib Khalil, announced today that the cartel will cut production by 520,000 barrels per day. Indonesia also announced that it will suspend its membership in the organization.

OPEC: Oil to Reach $170 This Summer!

If the OPEC ministers genuinely believe that the price of crude oil is being driving higher by speculators, who better to use their limitless trillions of Dollars of oil wealth to short the market and teach the speculators a lesson by forcing prices down? Perhaps the conviction of OPEC oil ministers isn't as sincere as they would have us all think! Prices have risen today, and have reached just $1.40 off record highs from the past two weeks.

Today, OPEC may have revealed its true belief when OPEC chief Chalib Khelil tipped his hand and said that he expects the price of crude oil to reach $170/barrel this summer. Hey, it's summer now, Mr. Khelil!