BEIJING, Sept. 2 /Xinhua-PRNewswire/ -- International oil prices fell back from last month. The future price of raw oil
( http://www.tootoo.com/buy-_raw_oil/ ) on the New York market even reached to $147.42 per barrel on July 11th, the highest price in history. However, it has fallen about 25%.
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The main oil consumption countries in West, such as the United States, attributed the rising oil price to OPEC oil shortages. With the fallback of oil prices, OPEC will face less pressure.
Separately, agriculture information in Tootoo.com ( http://www.tootoo.com/ ) demonstrates that since oil prices on the New York market have broken $100 per barrel for the first time, the prices have continued rising in the following months. The main petroleum consumption countries ( http://www.tootoo.com/w-Minerals_Metals_Materials/ ) in the West were not satisfied with this situation. The American House of Representatives passes a proposal to prosecute OPEC in order to control oil prices. OPEC insisted that raw oil supply is abundant on the international market, even facing the pressure of increasing oil output. OPEC thought the rapid oil price increases were caused by the devaluation of the U.S. dollar, speculation activities and political turbulence, not by the unbalance of supply and demand. The fallback in last month has to some degree supported OPEC's opinions on the cause of rising oil prices.
Generally speaking, OPEC is in a dilemma. They are afraid of both rising prices as well as fallback prices, because both of them will harm their profit.
On the surface, high oil prices can bring increased profit, and so OPEC hopes for higher prices. However, high oil prices are becoming a new challenge for the global economy, especially when the speed of economic growth is slower, as it is in the major developed countries. If the global economy is in hot water because of the high oil prices, the raw oil production countries are also impacted. What is even more important is that rising prices will restrain oil ( http://news.tootoo.com/Minerals/Non-Metallic_Mineral_Products/ ) consumption and encourage countries to explore new energy instead of raw oil. This will be a shock to oil production countries in the long run. So it is a good idea to keep oil prices high, but at a price also acceptable to major oil consumption countries.
