Which Price Levels Good for Climate and OPEC?

Which Price Levels Good for Climate and OPEC?

International and Arab News

Despite the frenzied talk about the huge rise in oil prices, what the market is witnessing is not a novelty, as prices have reached higher levels in the past, based on political, military and economic developments. If we compare the purchasing power of Dollars a barrel of oil can fetch today with what it could twenty years ago, we will find that it has decreased. The trajectory of fossil fuel prices has often been slower than the upward trajectory of inflation rates. According to the sovereign right of states to exercise control over their natural resources, within the scope of compliance with commercial contracts and international agreements, no party has the right to impose restrictions on production and export levels. This argument is meant to help answer the question of whether the large fluctuation of prices is in the interest of oil-producing countries, and how it relates to environmental goals and commitments to reduce carbon emissions.

At the time when Arab oil producers imposed an export ban in 1973, the price of a barrel was less than $3; within a year it rose to about $12. This price correction was necessary, because the price of oil until that