There is no magic solution to the problem of rising oil prices. In the 90s, the OPEC received very strong advice from consuming countries to let the market decide prices of oil, so, since then, that's what is going on.
Today, Oil price has surged to US $135.04 a barrel in after-hours electronic trading on the New York Mercantile Exchange.
Saudi Arabia, the world's largest oil producer and most influential member of the OPEC, announced a unilateral 300,000 barrel-a-day output increase, on May 16, 2008, in response to a request from the US President George Bush, citing customer demand.
The OPEC has kept production unchanged at its past three meetings in the months of December, February, and March, saying the market is well-supplied.
A Goldman Sachs’ Analyst said in a May 16, 2008 report that "the possibility of US $150 – US $200 per barrel seems increasingly likely over the next six to twenty four months."
Investment banks should stop publishing Oil price forecasts because the market is reacting, and investors are chasing those "projected" gains. The price of oil is, certainly, out of control!!!
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