Will it not be possible for the United Nations to take some drastic measures to keep the crude prices on chec

Question

Day by day international crude prices are mounting without any rfason or rhyme by certain greedy members of the OPEC,blackmailing the needy countries by manipulating the pricing policies.Can the UN take up this issue with the OPEC nations by way of imposing some sort of sanctions to keep the prices undser check.

Answer 1

Socialism doesn't work. It only makes problems worst. Having the UN or anybody take steps to control oil prices doesn't solve the problem. The Saudi's will either get paid the market price for their oil, or they'll just stop pumping it.  So either the UN would have to eat the price of oil which is in excess of the price being paid to keep people happy, or shortages will grip the world because the oil tap was shut off..

Price Controls only hurt people...

Answer 2

there is a reason and a rhyme.  We have become addicted to oil and connot easily change to other forms of energy.  When that happens, and demand rises, you have to pay the going rate.  The alternative is a shortage, where you can't get the product you need at any price, other than through a black market.  If you think the prices at the pump are bad now, try an illegal black market sometime.

So, the price of oil rises, and the market does it's job, allocating the oil to the customers who can still afford to buy it, and creating higher demand for substitutes.  High unmet demand for a product or service attracts investment, because of the potential for profit.  Investment in alternative sources of energy and in more fuel efficient vehicles and other methods of conservation are what we have been clammoring for for years and years.   high oil prices will deliver that investment and also the behavioral changes in our society that will make the investments pay off.

So, the real problem is the people who are stuck in the meantime, with no alternatives to paying higher and higher prices in the short run.     This is an object lesson in not living hand to mouth in terms of consumption and savings rates.  Middle class people need to have sufficient savings to weather disruptions in markets.  

What is left are the poor who cannot save because they are at or below the poverty line.  Those people we need to assist, if their transportation or heating costs rise through no fault of their own, we need to adjust the assistance we provide to recognize that.  and continue public policies that encourage more mass transit, job growth, education, more extended family and multi-family living arrangements and other low cost low impact ways for people to live.

Answer 3

You are completely wrong, the reason for the high Oil´s price are , the collapse of US dollar and speculative maneuvers of US investors.Think a little, if US dollar is falling,if interest rates are low,is Wall Street is plummeting, .. Where else would you put your money? Its obvious you are poor, otherwise you would know this...

Futures on Oil and Food.

Answer 4

only sanction you can impose is to stop buying oil from them, which will increase the price even further.

you can also invade OPEC countries, but we have seen how hard it is in Iraq.

Answer 5

Stop wasting your breath on a misbegotten rant.  Crude and all petroleum products are sold on the open market.  It works something like an auction:  "I have this much of that product available on date & make me an offer."

Mexico's production peaked several years ago and their production is down a quarter; Indonesia dropped out of OPEC because their production has dropped so low they are a net importer of oil; Saudi production has dropped over 2 million barrels per day.  There is NO MORE oil.  These fields are played out and you can't get much more out of the reservoir.  There used to be 10 fields worldwide which produced over a million barrels per day, now only 4 are able to produce that much -- the reservoirs are nearly used up.  We will be down to 3 MBPD fields before the end of this year.

So look at the elephant in the living room -- we are running out of oil at the same time the demands of 7 billion people are escalating.  The UN cannot create oil out of thin air.  Jawboning the petro-sheiks cannot increase production of a played-out field.

If you want some of the little bit that's left, put in your bid at the auction.  Or tell the enviromentalists we have to drill ANWR -- it is the ONLY known oil reserve left in the entire world.

Answer 6

Forget oil, there should be more use of solar, wind and geothermal energy.