Occasional Memo: 04/01/10
Is $75 the Fairest Price?
Two signals came out of the IEF meeting this week. One, oil prices between $70 and $80 are equally acceptable to OPEC and the IEA. Two, the Producer‐Consumer dialogue will focus more on price volatility. Both signals hinted at a desire for more control over the market. It’s important to keep in mind, however, that it is governments who make policy, and within the rules set by governments, markets should be left alone. In the meantime, the market will function more efficiently if the producerconsumer dialogue can indeed yield more transparent market information.