As 35+ Oil tankers are making lazy circles in the Gulf Coast waters waiting for crude oil prices to rise, OPEC countries are getting edgy looking at their black gold losing value.
President Obama has taken the first step on a long journey to break the oil addiction, but more has to be done to stablilize oil prices for the sake of the world's future economic growth. Even with greener cars and greener future, this country and others will need large oil imports for the foreseeable future.
President Barack Obama and other industrialized nations have to negotiate with OPEC and reach an agreement in order to stabilize price and production. This agreement should be between the 10 major Oil Importing countries and OPEC. These Major Oil Interested Countries (MOIC) should agree to set goals on the production and price for oil. The development of MOIC is an important development since the wild fluctuation in oil prices helped cause the current worldwide recession.
The goal of MOIC is to develop a target price of oil and keep that price stable for the benefit of all countries.
The target price of oil should be in effect for five years and start when the new agreement is signed. The target price should be between $50 - $80 barrel. The commodity prices of oil will be watched by a Commission set up by MOIC and employ the use of "circuit breakers" in order to stabilize the price. The "circuit breakers" will automatically go into effect when the price fluctuates $20 above or below the target price. OPEC has to agree to increase or decrease output on a weekly basis once these fluctuations take place. Increases or decreases in output will continue until prices stabilize.
This will effectively produce a long term Agreement that will stabilize Futures prices and production of oil for the entire world without having to be at the mercy of a few large oil producing nations.