As oil nears $70, OPEC worries about a price collapse

Updated

Ah, it's summer time. Families on vacation at the beach, office workers sneaking away early on Friday afternoon to hit the shore, and teenagers hanging out at the neighborhood ice cream parlor. Time to relax.

Well, OPEC is not relaxing. This summer, the oil cartel is concerned about a substantial drop in the price of oil in the weeks ahead. That's correct: OPEC is concerned about prices plummeting.

The price of oil has risen 20 percent in two weeks to over $68 per barrel. It shows no sign of a sustained easing, despite the global recession, and yet producers of 40 percent of the world's oil are fearing a price collapse. Is OPEC disconnected from reality or are they on to something?

Advertisement