OPEC Can Expect Some Backlash

OPEC recently announced that it may cut production if the price of oil approached $80 / barrel. If oil approached $80 / barrel and OPEC followed through on the cut back, OPEC could expect European backlash. Recently because of the cheap dollar, as oil has soared European countries have not experienced the full brunt of the price increase. But the recent rebound in the dollar changes that and if the dollar were to continue to increase European consumers would experience more of the pain caused by the high oil price. If oil prices recede to the $80 range and OPEC moves to counter balance the price decrease with a production cut, and a recession in Europe ensued, OPEC could expect some strong condemnation from the European countries. Note to OPEC, it would be wise to reconsider this.