This past week OPEC met for only the third time in the past 47 years and “pledged to provide the world with reliable supplies of oil and fight global warming;” whatever that means. The meeting was called, despite what the official rhetoric, to discuss the sliding dollar and its impact on the income of the OPEC states since most of the oil revenue is in US dollars. The dollar has fallen about 15% in the past 12 months. Also Venezuela’s Hugo Chavez (surprise, surprise) made claims that oil could hit the $150-200 dollars a barrel.
This is a logical “realist,” if you will, move by OPEC. They have an economic problem—the weak dollar—and they want to fix it; no biggie, but there are two scary parts to this. First, Mahmoud Ahmadinejad is one of the leading people trying to convert oil money out of American dollars. Any plan presented by Ahmadinejad would be a direct attempt to harm America, not just help OPEC, if he the mastermind of this plan. Secondly, Chavez, and his Ecuadorian counterpart, Rafael Correa, called for a more political agenda for the group.
If OPEC decided to become an even more of a political player on the world stage America could be in a BAD situation. This plan was balked at by Saudi King Abdullah "Those who want OPEC to take advantage of its position are forgetting that OPEC has always acted moderately and wisely. Oil shouldn't be a tool for conflict; it should be a tool for development." So thanks King Abdullah, you’re America’s hero for the week!