To be correct, OPEC does not set the price of oil. Their oil ministers set the production quotas for the counties in OPEC.

They cannot control production of non OPEC countries. Of the top 7 oil producing countries, OPEC has only 2, Saudi Arabia and Iran. Russia actually produces more oil that Saudi Arabia which is number 2 and the USA is third.

OPEC does not even produce the majority of oil.

http://tonto.eia.doe.gov/ftproot/pre...3im/sld010.htm

What OPEC, and by this we mean Saudi Arabia, can do is to control the marginal production because they have excess capacity that they can turn off and on to manipulate the supply side of the supple demand curve. OPEC and Saudi Arabia cannot control demand, nor can they control the speculation in oil futures that also factor into oil price.

This recent spike in oil is due to increased demand in China and Asia. Blame all the stuff including foreign rods and reels that we buy, that fuels their factories and fuels their demand for luxuries like cars.

http://news.bbc.co.uk/2/hi/business/8563985.stm