OPEC absolutely is trying to keep prices high (by cutting production as fast as they can), there is no question about it...

Your statement is ridiculously naive.

 

Maybe so, they tried but failed miserably. All the cuts didn't prevent oil from falling from $150/bbl to $37/bbl in six months.
I'll make you a bet that all their cutting (which will bankrupt their economies) wont get oil back over $75/bbl any time soon (not until the world's economies and the resulting demand picks up).
Most countries have oil as their prime source of revenue. As prices plummet, they can't keep pay for their social programs (see Venezuela...their economy breaks even at $70/bbl). Eventually, they can only cut so far, and then the fun begins...non-compliance (aka cheating). One country, facing financial ruin opens up the spigots to try and maximize revenue and then the others, seeing this, do the same.
OPECs mandate is not to keep prices high, but to try and coordinate supply amongst nations with their own agendas.
They can stabilize prices, to a degree, but in the long run they can't control it.
I'll stand by my naivete and argue that the free market (supply and demand, or lack thereof) will dictate prices.
OPEC can not get oil over $60 without a strong global economy.
I guess the prices over the next few months will see if I am naive, or not.

During the 30 plus years since OPEC became a force, the price of oil has, at best, tracked or trailed the general level of inflation. Without coordination, each country would go from boom to bust, first overdrilling and pumping during strong pricing. Field mismanagement would further damage their infrastructure. The sharp increase in supply would cause prices to crash and reap ruin on their industry. These cycles would cause tremendous economic and social upheaval.

One other point, the weak dollar probably had more to do with the $150 spike than any other component. As dollar fell, oil which is priced in dollars, got cheaper to non-US buyers.

 

Libya, with its support of Hazbollah and killing of key Lebanese is hardly a peaceful anything.

Iran/Iraq kinda checked each other, that brutal war in the '80's (in which we support Iraq) pretty much exhausted them. Now that we're in Iraq, Iran has a cause celebre so to speak.

Finally, any tyrant/dictator on the left or the right is, "crazy". Are we going to go around knocking 'em off only to see them replaced by another?

You assume Iraq is, "finally saved" as what appears is a democracy. We don't know that's the case yet. Elections in that part of the world seem to be dead ends, i.e. the winner never has another election.

We don't know if killing off this crazy in Iran will really turn them against us and produce in a region of the world know for crazies, yet another.

 

Hmmm.. Iraq invaded (and we helped, sigh...) Iran in the 1980's. This caused massive damage, socially, economically and politically.

 

I was referring to the invasion of Iraq, not the invasion by Iraq.


...but enough geopolitics, let's get back to the Camry Hybrid.

 

Haroldo,

I didn't type that they could control the price. You typed that they weren't trying to, which is absolutely incorrect.

Sean