Quote:
Originally Posted by Ray
Is the oil prices because of the ME problem?
I am not to conversant with economics and so I would be grateful if the interconnection is explained.
I know that there is the stranglehold of the OPEC, but could it be explained in a simplistic manner?
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I think I'm being pretty simplistic. Oil prices are not only because of a ME problem, but that is certainly something that contributes. Prices for all sorts of things just drop when there is less threat of conflict, there is less to worry about for investors. These are general principles rather that a specific policy prescription. That's why I'm saying, including members of OPEC in negotiations/regional peace talks would make sense. They get security assurances, they give so slack in the resource stranglehold. It's just a thought, again, not something that will actually happen.