Grappling over oil politics is relentless in this world. In a new twist in the game, at one hand U.S. and other oil-consuming nations have requested OPEC, which produces almost 40 percent of the world production, to expand out put to ease the world price. On the contrary, Venezuela seeks a cut in oil production.



As the OPEC meeting is scheduled to be held in Caracas and they are likely to maintain their present level of crude production. The officials have signaled out that there would be no reduction in the oil production.



Though the U.S. is insistently persuading to increase the production level to bring the prices down, but the fact is the production ceiling have been revised five times in just two years and even then it failed to check the increasing prices.



In the meanwhile, international Energy agency has said that the oil prices are relentless because Indonesia, Iran, Venezuela and Nigeria have failed to boost their production. On the other hand, U.S. seems to be irritated, as it desperately wanted Kuwait to open its oil field for private investors but its arms twisting technique is not working. Kuwait seems to desperately delaying the bill to make law to allow foreign investment in its oil field.



However, U.S. is all set to provide Iran a package of incentives if it gives up uranium enrichment or if it failed to do so, economic sanction may be slapped to Tehran. Reacting to it, Tehran has warned that if any move taken to slap sanction against it, it will retaliate by closing Strait of Hormuz. It is enough to push the oil prices around $250 per barrel as one fifth of the world’s supplies pass through this.



Via Bloomberg