OPEC has decided they're not making enough money right now. So, to help bolster their bottom line and line their pockets with everyone's money, they've decided they need to cut production.
OPEC certainly understands the power of supply and demand. They know that if they limit supply, they can control the costs because of the rising demand. This will happen even as the economies of the world take a hit. the sad thing is raising oil prices will only serve to slow future economic growth because it will increase the costs of other goods and services. The OPEC nations don't care about these global repercussions one bit, though. They are simply interested in earning money for themselves.
The solution is simple, we need real energy independence. This means we need to focus on developing short term solutions for high energy prices (drill for more oil, open more refineries, more use of natural gas), as well as develop mid term (nuclear power, wind power, more bio-fuels) and long term (increased solar, tidal and geothermal power) energy solutions for our country.
This is the realistic solution that allows us to really move away from foreign oil and their major impact on our economy.