Oil Prices

I have something I don’t understand. Since the oil people, OPEC or whoever, have a monopoly, why is it necessary to create or play a shortage game to raise prices? I understand supply and demand. The refineries have to pay more for a barrel of oil and that gets passed on to consumers. However, the price of that barrel is set by the cartel. If they decide to pump less, how does that automatically raise prices? If they want to raise prices why don’t they just do so?

When the cartel claimed there was a shortage in the ‘70s our government decreed the auto manufacturers had to get better mileage. I find it hard to believe that our government believed the shortage was real, so why the decree? To get that mileage the manufacturers have had to reduce weight until we’re riding in death traps. Why would our own government do that to us?

Where is the shortage? I don’t see any lines at gas stations or any shortage of products made from petroleum. I guess there were some heating oil problems back East but the effects seem to be minimal. If we’re not affected, once again, why would the prices go up?

JOHN WAUGEN

Anaheim