>I often wonder why OPEC increases oil: nearly all of the exporting countries would be financially better of if the oil sold at higher prices for longer times<g>.
I suspect they may have several incentives here:
1. They may suspect that they can provoke a world-wide economic disaster, and they want to avoid that, since it will eventually affect them, too.
2. If oil prices are too high, there is more incentive for other countries, to seek alternative energies.
3. Finally, they may want to stay competitive compared to non-OPEC oil producers.
Difference in opinions hath cost many millions of lives: for instance, whether flesh be bread, or bread be flesh; whether whistling be a vice or a virtue; whether it be better to kiss a post, or throw it into the fire... (from Gulliver's Travels)
