Wednesday, January 2, 2013

OPEC Makes a Trillion Dollars in 2012

Quoting from an article in CNN entitled, OPEC cartel to reap record $1 trillion: "The Opec oil cartel, led by Saudi Arabia, will pocket a record of more than US$1tn in net oil revenues in 2012 as the annual average price for Brent, the benchmark, heads to an all-time high in spite of weak economic growth.

"The windfall will provide fresh capital to some of the world's largest sovereign wealth funds. United Arab Emirates, Saudi Arabia and Kuwait, the most influential members of the cartel, are home to three of the world's 10 largest SWFs by assets under management, according to estimates by the SWF Institute."

The average price per barrel of oil in 2012 was $111.5, an all time record. Saudi Arabia's oil minister says they planned to keep oil prices above a hundred dollars a barrel in 2012. They've achieved their goal, much to the detriment of the rest of the world's economy.

The price of oil is rising steeply, driven by OPEC's desire to bleed the world. Only ten years ago, OPEC made $200 billion. In 2012, they made over a trillion dollars. This greatly helped the Save the King Foundation and the spread of Wahhabism worldwide, but caused economic damage to the rest of the world. The last paragraph of the article makes it clear that our gasoline prices are only going to go up:

"The International Monetary Fund estimates that Riyadh and Abu Dhabi both need oil prices at about $80 a barrel to balance their budgets. Only a decade ago they were able to balance their budgets with oil prices averaging $25." Gal Luft says they will need at least $110 a barrel by 2015.

If we had fuel competition in America, we wouldn't have to worry about this. You can do something about it right now. Start here.

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