OPEC looking to jack oil prices back to $70 to $90 dollar a barrel range.

<p>If there is any question on whether the United States should still persue a drill here, drill now policy; <a href=”http://www.platts.com/Oil/News/8216338.xml?p=Oil/News&amp;sub=Oil”>this should answer</a>. OPEC is looking to cut production further in an effort to shock oil prices back to the $70 to $90 a dollar barrel range.</p>
<p><em>Khelil, who is also the Algerian oil minister, said there were “obvious” signs of excess supply with consumer stocks at very high levels at 56 days of forward cover, against a 52-day average over the last five years. This, he said, represents around 320 million barrels of oversupply.</em></p>
<p><em>The next OPEC meeting due to be held in Oran, Algeria, on December 17 “should take an adequate decision to remove this quantity over a set period of time,” be it three, six or nine months, he said.</em></p>
<p><em> Khelil again appealed for help from non-OPEC members to drain excess supply, saying the length of time it would take to balance markets would depend on their support.</em></p>
<p><em> It was necessary for oil prices to return to levels between $70 and $90/b to guarantee future investments in “difficult” production areas, which he said required higher prices to be economical.</em></p>
<p>Of course what is not mentioned here is the damning effect such a move would have on the world markets which are already under a severe amount of stress with credit problems.</p>
<p>It is my view that much of the problem with foreclosures in this country were based in large part to energy related issues which sapped our economy of much needed disposable income and caused the inflation of all goods. People at that point were unable to make payments on many items and defaulted.</p>
<p>If we (the United States) were to drill and obtain more of our own oil, then we could maintain downward pressure on the market and keep it in check. This is why it is important to continue to pressure our law makers to drill here, drill now.</p>