US. congress declares OPEC illegal

Threatens sanctions on members

From Laolu Akande, New York
WITH its citizens at the receiving end of the rising cost of crude oil in the global market, the United States Congress has embarked on a course that may send international law experts back to their text books.

In a unanimous vote, the Congress on May 23 passed a bill, which criminalises the formation and operation of oil producing countries acting as a body.

In effect, the bill, which has been sent to the US. Senate, has declared illegal the activities of the Organisation of Petroleum Exporting Countries (OPEC) of which Nigeria is a prominent member.

By the proposed law, the US. legislators hope to remove the one voice with which the cartel has succeeded so far in determining the prices of the product at the international market.

It is, however, unclear how the proponents of the law hope to force their will on "erring OPEC members," although, the assets of the cartel's members in the US. are subject to court action, including seizure or confiscation.

The bill, entitled: "No Oil Producing and Exporting Cartels Act of 2007" (NOPEC) provides for court action against the indicted countries in the US. and denies the "accused state" - or may be respondent, if the action is by way of petition - sovereign immunity.

Crude oil currently sells for $69.99 per barrel at the international market, while petrol (called gasoline in the US.) goes for about N420 ($3) a gallon in America.

John Conyers, the US. Congressman who originated the bill in the House of Representatives expressed the worry of several Americans that the prices might go further up as the nation prepares for the summer season, which is the busiest driving time in the US.

Said Conyers: "We are told this won't be the end of these skyrocketing price hikes either. The , forecasts (are) that more record prices are probably on the way, especially as the summer begins."

The bill has now moved to the US. Senate and is being considered for adoption. Two leading senators from the Democratic Party, Patrick Leahy from the state of Vermont and Herb Kohl, from Wisconsin are already supporting the bill, a clear indication that the matter could receive attention and some focussed consideration before too long. Already, the bill has been read twice on the US. Senate floor.

OPEC member-countries, generating well over 40 per cent of world's oil production are also known to hold at least two-thirds of the world's oil reserves.

OPEC members are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

The bill declares as illegal and a violation of the proposed Act "for any foreign state or instrumentality thereof to act collectively or in combination with any other foreign state or any other person, whether by cartel or any other association or form of co-operation or joint action, to limit the production or distribution of oil, natural gas, or any other petroleum product, to set or maintain the price of petroleum, or to otherwise take any action in restraint of trade for petroleum, when such action has a direct, substantial, and reasonably foreseeable effect on the market, supply, price, or distribution of petroleum in the United States."

The bill specifies that any country that is involved in such an action would be denied the defence of sovereign immunity in a US. court once an action is brought against such country in America based on the bill.

The bill "denies a foreign state engaged in such conduct sovereign immunity from the jurisdiction or judgments of US. courts in any action brought to enforce this Act."

It continues: "No US. court shall decline, based on the act of state doctrine, to make a determination on the merits in an action brought under this Act." It authorises the US. Attorney-General "to bring an action in US. district court to enforce this Act."

The bill will have to be passed concurrently by the US. Senate and then signed into law by the American President before it can become law.

The White House is believed to be opposed to the promulgation of the Act. Although the George W. Bush White House is keeping its fingers crossed on the bill, since it is still a few weeks away from getting to the White House in case the Senate also okays it, the promoters of the bill, Conyers have attacked the American President on the matter.

Conyers, one of the most senior US. lawmakers and chairman of the House Judiciary Committee, is a Democrat from the State of Michigan. Local media reported Conyers, as saying: "The Bush administration's threat to veto this bill is just further proof that the administration favours the international oil cartel over the American consumer."

Nigeria is now the third largest supplier of crude oil to the US. with a supply rate of 12 per cent coming only after Canada and Mexico, two countries that are not OPEC members.

Technically, the bill is seen as a direct clash with OPEC member-countries and Nigeria is currently leading the cartel in the supply of crude oil to the US., with Saudi Arabia and Venezuela in tow.

For several years, US. lawmakers have been known to be much opposed to the idea of OPEC, even though the cartel's leaders, especially the Saudi Arabians, are known to have struck a deal with the US. government in the early '60s and '70s to denominate the price of oil in dollars, an agreement that raised the status of the dollar then as the ultimate internationally convertible currency

However, speaking on the floor of the US. House of Representatives late May, Conyers lamented that oil prices in the US. were now at an all-time high.

His words: "Mr. Speaker, gas prices have now reached an all-time record high, topping even the 1981 spike in price that had stood as the record high for 26 years. According to the Energy Information Administration, the nation-wide price of unleaded regular gas hit $3.22 a gallon."

Conyers said the "record-breaking price, one in an unending series of continuous price hikes over the past month, is hurting Americans in their pocketbooks, and we have got to do something about it. Retailers across the nation are saying that soaring gas prices are prompting consumers to cut back on their shopping trips and their purchases."

Conyers accused OPEC of price-fixing conspiracy, which he says has been on for a long time. Said he "That is what I call it, a conspiracy, has unfairly driven up the price and cost of imported crude oil to satisfy the greed of oil exporters. We have long decried OPEC, but, sadly, the (Bush) administration has done little or nothing to stop this."

The bill had 12 other co-sponsors at the US. House.

http://www.guardiannewsngr.com/news/article01/030707

These Americans sure love to flex their muscles but at least they care about their people, unlike our leaders here in Nigeria who could be bothered a damm whether we die or live. The US leaders are concerned about rising fuel prices, our government is instead helping to increase fuel prices for us here. Insensitive !

Does the US really have the power to declare illegal and outlaw an assembly of nations? I guess that power belongs to the World Court and US should not arrogate that to itself.

Is this really true?

na wa oh

If they pass such a law, there will many idiots who will still say the US is right to make laws for the rest of the world. We need to start opening our eyes to the evil forces that control the US as well.

We too have now been declared business terrorists and the US has decided to abolish our freedom of association.

They will soon invade us for having one of the World's Massive Deposits (WMD) of oil. I do believe the US has the right to do this, because it will be proved by some members of this forum. Here they come. Proponents of

I used to think GW Bush and his supporters were the only nuts in the US government. I was wrong. Shame.

americans think the world revolves around them.
imagine that nonsense because they need oil yet there is a group of industriliased nationa cartel

America's arrogance and lack of respect for others is killing them!!!!! They go around trampling on other people's cultures and way of life in the name of freedom.

I have vowed never to go to the US for anything because of the way they humiliate our people at the consulate and Airports. I don't hate them but they have lost my respect.

This is what you get when you put an OBJ in the WHITEHOUSE, bad leadership results in bad followership!!!

Imperialism is raising head again, they dont know they are suppose to be paying for the feul we use in 9ja, $3 a gallon is too cheap for them if we can pay N70 for a litre i think they should pay more or they open their reserve and start using from it. Thats why i will like to see China and Russia to grow ineverything to at least counter the American infulence somehow otherwise one day we will all go back in chains. Europe is a useless block.

The U.S congress and their comic relief. They probably think that the word "world" refers to USA and that is why they are the self appointed world police. They will eventually lead us to a 3rd world war if they continue acting like this, but guess what. The tide will turn against them so fast they will swim in circles.

This is a country that happily sits in a group of 5 nations calling the shots for world security and also wields a veto power.

OPEC should suspend the selling of oil to the U.S for 6 months as punishment. The trade embargo they so happily slap on other countries should be slapped on them in terms of oil for a change. They have large reserves and untapped sources, let them use them.

I can’t wait long enough for China to fully emerge as an opposing power to the US. Ihe ga eme ya mee. (Damn the consequences)

Boy! this is the most stupid statement coming from the US congress.

What do you expect when a country is founded on the blood of innocent people and developed with the blood of black africans?

OPEC should suspend any oil shipment to the US for a whole year so these guys will understand that USA is just a country out of many.

Now, it seems that all the blind supporters of US have gone on vacation. Time is a good thing because given ample time things will sort themselves out.

@Afam

shey you see now that our dearest Jewish-Nigerian-British-American citizens cannot talk anymore.

If it is Yar'Adua that declares NATO illegal for allowing the US share nuclear weapons with Belgium, they will say Yar'Adua should be killed. They will start calling for the overthrow of the government, they will start writing motivational messages for potential coup plotters.

Now the imperialists has outlawed OPEC. Their ardent followers have gone back to the drawing board the fashion out a justification for this.

This is what results when you are too extreme. When you have supported one party so much that you become so bias, by the time they start doing what is blatantly wrong, you cannot talk. And if you do not talk or cannot speak out against them, then you support them. This is how evil perpetuates itself.

Is OPEC the cause of the current crazy prices of gasoline? It is
1. The war in Iraq
2. diplomatic issues between Saudi Arabia and the US started by Donald Rumsfeld.
3. Tensions between the US and Venezuela.
4. Rapid growth and development of India and China
5. Tensions between US and Iran.
6. US sponsored militancy in the Gulf of Guinea.
7. Tensions between US and Russia over a Missile Defence System.

What has OPEC got to do with all this? How has OPEC caused all this?

Na their death and final downfall them dey look for so. And it will happen.

The world is ripe World War 3. The Nations of the East shall be conquerors and Nuclear pollution will contaminate all the Northern Nations. Only Africa will remain untouch. I say the Gospel shall soon be fulfilled for all to see that God has never and will never lie.

@denex,

Na so life be.

There is nothing as good as being objective, sincere and honest in all our doings, those who choose to do otherwise simply lose out and they find it difficult to swallow their shame.

No one is perfect, no group or nation is either. Blind support for anyone, group or nation is wrong.

We must learn to apportion blame and praise accordingly regardless of the people involved.

We must stand by the truth, the facts and promote unity, fairness, love and justice everywhere.

Enjoy joo.

Honestly, I thought everyone here was going to say that US is right in that decision. The way the US behave makes me hate them!

Why would they want to control other countries? If we form OPEC with other countries of the world, is it their business? If they do not want to buy at our prices, then they should source for alternatives. They MUST not buy from us. If they do what they want, this means that it is not a FREE MARKET ECONOMY anymore [as always advocated by G.W. Bush]

This is making me mad! If form alliances like OPEC is wrong, then why don't you also strike out UNITED NATIONS? What makes them feel the world revolves around them?

My only problem is that my voice will never be heard by the US Congress? If it could, I would have given them a piece of my mind. Somebody should please tell them that they are not in control of the world.

@topic,

Can we try to sift out the main issues here as against going on a tangent based on prejudiced leanings? Denex has laid out some interesting points which can be addressed objectively. It is funny how some have started to name-call perceived voices of dissent even before making any contributions. is that the best they can bring to a debate?

And by the way, George Bush opposes this plan despite the support of the majority of the House including the Veterans whose opposition to bush on iraq was considered as a lifeline for those who just hate the man. Since you consider the man's input to be weighty based on his length of service, why don't they use the same yardstick now to arrive at a conclusion? I guess it is because it does not fit their agenda.

Let me include the following points in addition to the one that Denex raised.

1. Why do 60% of oil producing nations choose to keep away from OPEC?
2. Does OPEC encourage the free market that everyone yearns for?
3. What does OPEC do for its members, and more importantly how does it affect the average Nigerian?
4. Is Nigeria a member of OPEC by reason of the citizen's choice? Nigeria is also a member of OIC too.
5. Will the disbandment of OPEC translate to cheaper crude oil? If it does, wouldn't that be a relief for Nigeria who import virtually all their refined petroleum based on the current high price?
6. Does the U.S. have the right to fight against an association it considers detrimental to the welfare of its citizens and national interests?
7. Do the OPEC countries have a right to retaliate?
8. Does everyone notice that OPEC is predominantly a conglomeration of Muslim countries with the exception of Angola, Venezuela and Nigeria? Nigeria being a member of OIC is understandable I guess.

Can we address these issues in addition to Denex's please. Cheap insults and character assasination should be jettisoned.

The craziness of America knows no bound. How can a buyer tell the seller how much he's to charge, who to associate with etc? The US has been taking the world for a ride for too long. This is why the US wants monopoly on nuclear weapons so it can dictate and force its terms on us all.

TayoD:

@topic,

Let me include the following points in addition to the one that Denex raised.

1. Why do 60% of oil producing nations choose to keep away from OPEC?

Well, it seems that some are tired of insulting others and would want to stick to issues, good thinking.

Now, you asked 8 questions but before we deviate way too long I need to ask for confirmation that 60% of oil producing nations keep away from OPEC.

Can you explain this statement abi na question because I do not believe it is correct to state that 60% of oil producing nations are out of OPEC.

While on this clarification it is also necessary to consider the quantity of crude oil (Saudi, Iraq and Iran coming 1st, 2nd and 3rd I think) and quality (even Nigerian crude remains one of the best due to the low sulfur content apart from brent).

The US sure does have oil just as those in the North Sea area but what does it cost to produce the crude and to refine the crude?

Abeg, answers are needed to the issues raised based on the very first statement you made.

@Afam,

Well, it seems that some are tired of insulting others and would want to stick to issues, good thinking.

I will not even respond to this. It is so obvious those who have started personalising issues even before any coontrary opinion came on board.

Now, you asked 8 questions but before we deviate way too long I need to ask for confirmation that 60% of oil producing nations keep away from OPEC.

For a list of Oil Producing Nations, please check out this link: http://en.wikipedia.org/wiki/List_of_oil-producing_states

Can you explain this statement abi na question because I do not believe it is correct to state that 60% of oil producing nations are out of OPEC.

The link above provide you with answers. And by the way, Equador withdrew its membership from OPEC because its interests was not being served particularly because OPEC limited how much crude oil it should export. This limitation is also imposed on Nigeria as well who cannot export more oil to meet its financial goals all in the name of the Cartel called OPEC. Gabon is also a former member of OPEC.

While on this clarification it is also necessary to consider the quantity of crude oil (Saudi, Iraq and Iran coming 1st, 2nd and 3rd I think) and quality (even Nigerian crude remains one of the best due to the low sulfur content apart from brent).

Yep. Nigeria's crude is one of the very best in the world in terms of ease of refining as well. Considering the quantity of crude oil export allocated to each member is a negative to the image of OPEC. Equador which needs much more money than Saudi Arabia will have to limit its output so Saudi can maintain hers. What sort of arrangement is that. I wonder why they should limit Nigeriaa's production also when we need the money much more than they do.
Can you imagine a situation where a manufacturer is asked to limit its production so other companies can maintain their ever-increasin profit margin? Whose interest is being taken care of? The priviledge few in the cartel or the citizens of the member countries?

The US sure does have oil just as those in the North Sea area but what does it cost to produce the crude and to refine the crude?

While the cost may be high, it pales in comparison to National Security which the lack of oil would engender. America's limitation in producing oil is because of the powerful environmental interest group that prevent the legislation from moving forward. Bush has been calling for the U.S. to tap into her resources while building more Nuclear plants but these folks will not let it see the light of day.

Abeg, answers are needed to the issues raised based on the very first statement you made.

I trust that the answers have been provided.

Kindly address the issues Denex raised while telling us why and how each point is relevant to the discussion.

@Tayod

I will try to address your questions.

The link above provide you with answers. And by the way, Equador withdrew its membership from OPEC because its interests was not being served particularly because OPEC limited how much crude oil it should export. This limitation is also imposed on Nigeria as well who cannot export more oil to meet its financial goals all in the name of the Cartel called OPEC. Gabon is also a former member of OPEC

OPEC as we all know, is a FREE association of nations. No country is coerced to be part of it and I also believe this is not the first time the concept of a cartel will come into play in business. I'm sure you understand the law of demand and supply. Firstly, OPEC can flex muscles because more than 60% of the world's oil RESERVES are in OPEC hands, and as at the last time I checked, the world's economies still run on oil.

Yep. Nigeria's crude is one of the very best in the world in terms of ease of refining as well. Considering the quantity of crude oil export allocated to each member is a negative to the image of OPEC. Equador which needs much more money than Saudi Arabia will have to limit its output so Saudi can maintain hers. What sort of arrangement is that. I wonder why they should limit Nigeriaa's production also when we need the money much more than they do.
Can you imagine a situation where a manufacturer is asked to limit its production so other companies can maintain their ever-increasin profit margin? Whose interest is being taken care of? The priviledge few in the cartel or the citizens of the member countries?

Which is more valuable?: 2 million barrels of oil sold at $60/bbl or 4 million barrels of oil sold at $20/bbl. I believe that in a nutshell encompasses what OPEC is all about as I don't have time to be typing for long. Any country not satisfied with the arrangement can opt out but as I said earlier, OPEC still holds the reserves.

Another fallacy is the myth that the US has oil it is not using. The US produces at maximum capacity but is a net importer because the demand far outweighs the amount of oil it produces. Oil inventories are for a few months duration and this is oil in the tank and not oil in the ground. Unless they want to open up other areas of Alaska for exploration, then you might say they will discover new oil somewhere.

@Tayod, in essence what I'm saying is that the US has no business interfering in other countries' matters. No country has come out to say they are being forced to stay with OPEC. At least even the US protects its own businesses so what is the problem with other countries doing same? The fact that they are not the US?

My dear Tayo,

I would have answered most of your questions but for the fact that you couldn't answer the only one I asked:

Is OPEC the cause of the current crazy prices of gasoline?

As for why George Bush supports the rise in gas prices, I wont tickle your fancy with one of my conspiracy theories.

But please let me know if OPEC is the cause of the current astronomical rise is gasoline prices.

I may also want to remind you that in NATO, the US has an arrangement that allows it to lend a Nuclear bomb to Belgium to bomb anybody. But we have not killed them. They are threatening our lives all over the world and breaking the Non-Proliferation Treaty, but we haven't put sanctions on them. We have not disbanded them.

Truly I tell you. The US has finally crafted its own destruction.

TayoD:

@Afam,
I will not even respond to this. It is so obvious those who have started personalising issues even before any coontrary opinion came on board.

If the statement above is not a response that you claim you won't be providing then I wonder what it is.

TayoD:

For a list of Oil Producing Nations, please check out this link: http://en.wikipedia.org/wiki/List_of_oil-producing_states
The link above provide you with answers. And by the way, Equador withdrew its membership from OPEC because its interests was not being served particularly because OPEC limited how much crude oil it should export. This limitation is also imposed on Nigeria as well who cannot export more oil to meet its financial goals all in the name of the Cartel called OPEC. Gabon is also a former member of OPEC.

The link above sure does have some content in it. Maybe we need to clarify a few things.

OPEC is a body comprising of nations that export crude oil.

Now, the US cannot even handle its oil requirement not to talk about exporting to the outside world.

Still on the 60% claim you made, can you please point me to any location where I can educate myself that 60% of oil exporting nations are not members of OPEC?

And bringing religion into this discussion does not make sense as long as Venezuela is not a muslim nation that road is a dead end.

So, we are still on question number 1 which has not been defended.

I hope to get answers so we can handle the other 7 questions one at a time, that we we will not misunderstand each other.

@Afam,

Here is a link providing the specific information you requested. I am sure you can interprete the data. http://www.answers.com/topic/chart-of-exports-and-production-of-oil-by-nation.

@Denex and the one,

I'll be back to address your concerns.

@TayoD

Thank you very much my brother. I hope I will be able to get a personal discuss from you, possibly backed by a link. Not just a third party link.

TayoD:

@Afam,

Here is a link providing the specific information you requested. I am sure you can interprete the data. http://www.answers.com/topic/chart-of-exports-and-production-of-oil-by-nation.

@TayoD,

Not so fast my friend.

Referencing the link you provided, here is a summary

1. 40 nations were listed

2. 12 of them are members of OPEC

3. 5 of them are importers including Indonesia that is a member of OPEC and US, China, Australia, India

4. Only 4 nations (Khazastan, Mexico, Russia and Norway) are non OPEC members that export crude oil over 1 million barrels per day

5. All the other exporters put together export less than 6M barrels per day, Saudi Arabia exports 9M barrels while the US imports 12M barrels.

I hope the summaries above explain to you why it is a wrong statement to state that 60% of oil exporting nations are non OPEC members considering the fact that a single member of OPEC accounts for more than all the oil exports of all the other nations put together with the exception of Russia and Norway.

So, now that we have effectively seen that the statement cannot hold water can we then move on to other statements or do you want to still defend this?

Let us not even forget that Iraq would have been exporting at least 3 times what it is exporting now but for the illegal invasion of that country based on the lies of Bush.

@Afam,

How you came about your conclusion from the infference is beyond me. The issue is 60% of oil exporting nations are non-members of OPEC. I never said anything about the volume of export. Your twisting the issue to read volume of export is dishonest at best.

Here are the facts (partly based on your submission)::

1. 40 nations are listed

2. 12 of them are members of OPEC

3. 5 of them are importers including Indonesia that is a member of OPEC and US, China, Australia, India

4. Overall, 35 countries are exporters.

5. 11 exporters are members of OPEC.

6. 24 exprters are non OPEC members

7. 24 x 100 / 35% = 68.6%

Unless you can prove that mathematics is wrong, the number is almost in the 70% range.

How can you discuss the issue of crude oil without discussing volume? I made it clear from day 1 that volume of crude oil is the main issue.

Your mathematics is indeed very correct but was that the impression you were trying to create when you stated that OPEC does not make sense since 60% of nations were not part of it?

If OPEC control over 80% of the crude oil export whether you have 200 countries sharing the other 20% or not is immaterial.

No vex, your maths correct but the point has been made that OPEC calls the shots and there is nothing the US can do about it.

Over to the other issues you raised.

@Denex,

Is OPEC the cause of the current crazy prices of gasoline? It is
1. The war in Iraq
2. diplomatic issues between Saudi Arabia and the US started by Donald Rumsfeld.
3. Tensions between the US and Venezuela.
4. Rapid growth and development of India and China
5. Tensions between US and Iran.
6. US sponsored militancy in the Gulf of Guinea.
7. Tensions between US and Russia over a Missile Defence System.

You lose some credibility when you mix facts with speculations. Your points are credible save for point 6 while point 7 has no real time effect on the cost of crude oil.

In my estimation, the biggest source of high crude oil is point number 4. OPEC makes the matters worse when they keep to the same supply despite a higher demand. Microsoft was fined in Europe for Anti-trust activities which is similar to what OPEC is doing.

The US making a demand on OPEC is consistent with world trade and economics. Brazil is right now breaking the patents of pharmaceutical companies in the US. just to meet its own needs. They cannot afford the cost of the drugs and threatened to continue with breaking the patents or have the US pharmaceutical companies sell at an affordable price to them.

What is the differnece in this case?

This is one point on which i will beg to differ slightly. The US congress has NO right to legislate against OPEC since no member nation is coerced to join. If the US were left to negotiate oil prices with individual nations we would have a situation where a barrel of oil costs $2!
OPEC is simply doing what it has to do to survive which is a good business strategy. Restrict supply, demand goes up and thus prices skyrocket.

TheOne made a good analogy, what is the use of selling 4 barells of oil at $20/barrel when you can easily sell 2 barells at $60/barrel? Yes you end up exporting less than would meet your immediate financial targets but you make a huge profit at the end of the day.

Oga Tayo,

Listen to yourself now? I f I build a house of 10 flats and decide not to rent out any will you force me to just because housing is scarce in town? Abi no be my house? OPEC member countries are at liberty to produce however much they want to, it's all a matter of economics.

We all know the gas prices are pinching those of you in the US, but that is a price you must pay for living there. Sorry hennnnnnn

@Davidylan,

This is one point on which i will beg to differ slightly. The US congress has NO right to legislate against OPEC since no member nation is coerced to join. If the US were left to negotiate oil prices with individual nations we would have a situation where a barrel of oil costs $2!
OPEC is simply doing what it has to do to survive which is a good business strategy. Restrict supply, demand goes up and thus prices skyrocket.

While OPEC has the right to do what it deems protects her interest, the US also has the right to do the same is where I am going. Like I said above, Brazil is dictating to US. pharmaceuticals how much it wants to pay for their drugs. Every nation is after their own interests.  

TheOne made a good analogy, what is the use of selling 4 barells of oil at $20/barrel when you can easily sell 2 barells at $60/barrel? Yes you end up exporting less than would meet your immediate financial targets but you make a huge profit at the end of the day.

That sounds good. But if we look at it in practical terms, selling oil for $20/barel means Nigerians do not have to pay so much money for refined petroleum as we now do. So what happens if oil becomes $200/barell? Does that mean Nigeirasn will have to cough out N500/liter? In this case, what goes around cmes around.

@The One,

Listen to yourself now? I f I build a house of 10 flats and decide not to rent out any will you force me to just because housing is scarce in town? Abi no be my house? OPEC member countries are at liberty to produce however much they want to, it's all a matter of economics.

So why is everyone shouting "free trade"? Don't you believe in free trade any more when the issue doesn't suit you?

We all know the gas prices are pinching those of you in the US, but that is a price you must pay for living there. Sorry hennnnnnn

The prices may be pinchin the U.S. but it is biting Nigerians. Despite the high price, the U.S. still added 132,000 jobs in June alone. Please tell me how the high petrol prices has affected Nigerians.

Bros Tayo,

this your last statement is only valid because we have people in government who do not use their head. Other Arab OPEC countries have some of the cheapest gas prices in the world, how do they manage it? If the govt has decided that the general populace will not benefit from high oil prices by subsidising prices (if they actually do as they claim), that doesn't mean it is not a good thing for prices to be high especially as we are net EXPORTERS.

TayoD:

@Davidylan,
While OPEC has the right to do what where I am going. Like I said above, brazil is dictating to US. pharmaceuticals how much it wants to pay for their drugs. Every nation is after their own interests.

Which is even stronger reason for OPEC's continued existence. The US is only interested in reducing how much they have to pay at the pump, OPEC is interested in ensuring they can squeeze out the maximum for every drop of oil. In the end everyone is fighting for their own interests.

TayoD:

That sounds good. But if we look at it in practical terms, selling oil for $20/barel means Nigerians do not have to pay so much money for refined petroleum as we now do. So what happens if oil becomes $200/barell? Does that mean Nigeirasn will have to cough out N500/liter? In this case, what goes around cmes around.

If we did not spend 20 yrs on fruitless turn around maintenances we'd be able to refine our own oil and sell at cheaper prices just as its done in other oil produciing states. That we have to pay the prevailing world price for crude oil drilled in our backyard has more to do with our own inefficiency than OPEC.