The spike in oil prices is a classic result of a cartel-dominated market (The New American, "Energy's Future," April 4, 2005). The oil producers can confidently slow down their exploration and production activities and make even higher profits than if they were truly competitive.
An unhealthy factor since March 2003 has been the entry of the U.S. government in support of the oil cartel OPEC via the occupation of Iraq. For two years, all votes of the Iraq/U.S. Delegate have been to support more cutback quotas. Along with the other 10 members of OPEC, plus Russia and Mexico, this cartel has been able to cause tens of billions of dollars of damage to the public of the world. Even our taxes go up to pay for all the federal, state, and local government purchase of overpriced fuel.
It's time to expose the state department's current direction to OPEC via the 3,000-staff embassy in Baghdad. It's also time to amend the antitrust laws to prevent the U.S. government from helping any cartel any where in the world.