Wednesday, July 31, 2002

[5:35 PM] Thomas Friedman asks what's going to happen to oil prices during war with Iraq. That's something that hasn't been discussed much amidst all the strategic planning that may or may not be taking place over how to oust Saddam Hussein.

Friedman writes

Don't kid yourself: If prices skyrocket because of a war in the Persian Gulf, Venezuela, Iran, Nigeria and others will cut back their output and keep prices high to milk the moment for all it's worth.

Really? Isn't OPEC a cartel. And isn't that what cartels do -- fix prices. Are we just supposed to be shocked that cartels control prices on products they monopolize in order to maximize revenue? Some interesting ideas nonetheless.

# posted 5:40 PM