Oil should be at $70 a barrel?
In a recent article in Sky News, the author claims that with the current supply and demand of oil, prices should be at 60-70 dollars a barrel.
A source at Opec said its 13 members were uncomfortable with the current price of crude, which last week hit a record $135 a barrel.
Based on present supply and demand, he said it should be fetching $60-$70 a barrel.
I have taken basic economic courses in the past and the only thing that could be making the prices this high are either 1) taxes or 2) the oil companies are inflating the prices through some kind of Cartel-like conspiracy.
Given, I have only the most rudimentary knowledge of economics so if someone with more economic prowess would like to chime in, please leave a comment.