the visible hand

it is the theory which decides what can be observed – einstein

U.S. blamed for oil prices

Posted by ecoshift on March 7, 2008

Deseret Morning News | U.S. blamed for oil prices
By William J. Kole
Associated Press
Published: Thursday, March 6, 2008 12:07 a.m. MST

VIENNA, Austria — OPEC on Wednesday accused the United States of economic “mismanagement” that it said is pushing oil prices to new record highs and rebuffed calls to boost output, laying the blame on the Bush administration.


OPEC President Chakib Khelil told reporters that the global market is being affected by what he called “the mismanagement of the U.S. economy,” and that America’s problems were a key factor in the cartel’s decision to hold off on any action.

“If the prices are high, definitely they are not due to a lack of crude. They are due to what’s happening in the U.S.,” Khelil said. “There is sufficient supply. There’s plenty of oil there.”

Khelil’s comments came one day after President Bush lashed out at the organization, warning Tuesday: “I think it’s a mistake to have your biggest customers’ economies slowing down as a result of higher energy prices.”

Khelil said crude stocks were well within their five-year average, and the 13-nation group was not inclined to either boost or reduce its current output of about 32 million barrels a day. OPEC satisfies roughly 40 percent of the world’s demand for crude.

OPEC said it “highlighted the economic slowdown in the U.S., which, together with the deepening credit crisis in financial markets, is increasing the downside risks for world economic growth and consequently demand for crude oil.”

“Crude oil prices are being strongly influenced by the weakness in the U.S. dollar, rising inflation and significant flow of funds into the commodities market,” it said.

Oil shot up a dramatic 19 percent last month as the falling dollar prompted speculators and other investors to shift cash to crude and other commodities as a hedge. Among other reasons for the spike: tensions in the oil-rich Middle East and Turkey’s incursion into northern Iraq.


One Response to “U.S. blamed for oil prices”

  1. They could always accept payment in Euros.Bush would really have something to cry about then but I don’t think the American people deserve that kind of melt-down.

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