OPEC finds means to stop oil prices from soaring

Perhaps, there are means to cease oil prices from rising,aside from the US President suggestion of increasing output.This will be the focus of the members of the OPEC as they reiterated that the oil market is well supplied. What are these means that OPEC are trying to counter against oil problems?

The authors write that Saudi Arabia is "somewhat vulnerable to future global oil demand" and in the studies, Kuwait was an "extremely inconsistent and unstable" supplier. We note that using past production growth for Kuwait can be particularly volatile because of Iraqi actions in the nation in the early 90s.

- According to the EIA's latest Short Term Energy Outlook the oil market will remain tight throughout 2008. They forecast crude will average $87 per barrel during the year, an increase of $15 on their 2007 average. However, because of higher production capacity coming from OPEC and non-OPEC nations, the EIA sees prices falling $5 in 2009 as spare capacity reaches about 4 million barrels per day.

- The EIA also estimates regular gasoline will average $3.14 per gallon during 2008, up 33 cents from last year and 56 cents from 2006.

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