Wednesday, June 06, 2007

OPEC warns bio-fuels could lead to soaring oil prices

The Organization of Petroleum Exporting Countries has warned that the drive for environment-friendly bio-fuel risked pushing oil prices "through the roof," the Financial Times reported Wednesday.

OPEC secretary-general Abdalla El-Badri told the business daily that the development of bio-fuels had made the powerful cartel consider cutting investment in new oil production.

"If we are unable to see a security of demand... we may revisit investment in the long term," the newspaper quoted him as saying.

The FT said El-Badri also warned that bio-fuel output could become unsustainable because it competed with food production.

He added that crude oil prices could go "through the roof" if investment in bio-fuels backfired.

The 12-nation OPEC oil producers' cartel pumps more than a third of global crude supplies.

Here is my honest assessment. THIS IS BULLSHIT!
If anything the rise in Oil Prices would be superficial on OPEC's part. The whole concept of more competition is so that prices actually get lowered. OPEC seems to be concerned. WONDER WHY?

Maybe because it cuts into their profits, cuts into their ability to have a Strangle Hold on the world economy at their will!

While I DO NOT believe that BIO FUELS are what will free us from this hold. I think this is interesting that they seem concerned.

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