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Show Weekly gpecfal aar OPEC ministers are likely to hold oil prices steady Washington An event will take place this week that could affect our future prosperity: The OPEC oil ministers will meet in Geneva to decide whether to raise oil prices. Iran's Ayatollah Khomeini is calling for tighter production and higher prices, and he has the support of the other radical oil states. Behind the scenes, he is also supported by the major oil companies and international banks. They have a vested interest in high prices. The truth is, there is no reason for high oil prices. The world has enough oil reserves to last a hundred years at today's rate of consumption. And new oil is being discovered faster than it is being used. But prices are kept artificially high by OPEC, which regulates the amount of oil that is produced. This, in turn, pushes up the price of everything that's manufactured or transported. The consumer ends up paying the rigged prices. Saudi Arabia is the bulwark of OPEC. The Saudis are now storing 18 million barrels of oil in supertankers off its coast. They are keeping the loaded supertankers at anchor, they say, because they fear the war between bet-ween Iran and Iraq could close the Strait of Hormuz at the mouth of the Persian Gulf. They want to hold the tanker-stored oil out of harm's way. In fact, the Saudis are holding the oil off the market in order to keep the price from falling. The Saudis have to produce more than they sell, because they need the natural gas that comes with the crude oil. . What will the oil ministers decide this week? They probably won't raise prices just now. There is too much surplus sur-plus oil available from non-OPEC countries. But they are likely to hold the price of oil at $29 per barrel. Of course, if the price wasn't rigged, oil would be selling at $3 a barrel, and we would be experiencing a new era of prosperity. Social security shock After Ronald Reagan became president, he accelerated ac-celerated a wholesale review of Social Security disability cases. Hundreds of thousands of disabled Americans were told they were sound enough to work and had their checks cut off. For those who decided to appeal, it took months for their cases to wind through the bureaucratic process. Some of the decisions were eventually reversed by judges. But for many, it ,was too late.. Some former recipients died. For others, the anxiety of losing their income worsened their conditions. con-ditions. For still others, the sudden financial loss meant the forfeiture of homes and cars. So Congress passed a law protecting beneficiaries from abrupt termination. But the law was temporary. It expires this week, and thousands of unsuspecting unsuspec-ting Americans may be in for a shock. If they receive termination notices after af-ter Dec. 7, the law will no longer protect them. Headlines and footnotes The General Accounting Office is investigating in-vestigating the leak of a policy report which discussed Federal Reserve Board decisions. The advance information infor-mation could have meant millions of dollars to investors. But Federal Reserve Chairman Paul Volcker is refusing to cooperate with investigators. in-vestigators. According to our sources, he views the probe as an intrusion into the agency's internal affairs. The four-year-old struggle by Afghan rebels to drive the Soviets out of their country has taken a new turn. According to intelligence sources, Afghan guerrillas have started crossing into the Soviet Union itself. They reportedly have sabotaged a few bridges but have not yet attacked any Soviet installations. Congressional investigators are planning to prove an apparent Energy Department scandal. At least five officials of-ficials may have awarded huge bonuses to each other. The investigators in-vestigators also believe the officials may have been operating a business ring inside the Energy Department and subordinates may have been coerced coer-ced into participating at the risk of losing their jobs. Israel is becoming involved in the confrontation between Libya and Chad. The Israelis are supplying Chad's army with light weapons and may also offer armored vehicles and antiaircraft weapons. For the Israelis, the goal is twofold: to thwart the Libyans and to restore diplomatic relations with French-speaking African countries. Copyright 1983, United Feature Syndicate, Inc. |