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Topic: Business
Number of pages / Number of words: 3 / 668
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"And they see the global economy can handle it so far."

But for OPEC there are dangers to this strategy.

First, by keeping prices in the $60 range, OPEC is encouraging oil production in other, more expensive places, thus continuing to add to supply.

Second, higher prices encourage conservation and the development of alternative fuels, like ethanol or fuel cells, which could ultimately reduce demand for oil and drive prices lower...


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"This is taking a significant production cushion and putting it just offstage."

Not everyone agrees with that view.

While OPEC will no longer be pumping at full capacity, there is still little room between what the world consumes and what it is able to produce.

"We still have that fundamental issue," said Brian Hicks, co-manager of the Global Resources Fund at U...


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