The cost of oil is hovering around $110 per barrel and Gold is at $1000 a troy ounce.
And this is the AP’s take on it:
OPEC blames U.S. for
fueling record oil prices
By WILLIAM J. KOLE
THE ASSOCIATED PRESS____________
VIENNA, Austria — OPEC on Wednesday accused the U.S. of economic “mismanagement”
that it said is pushing oil prices
to record highs and rebuffed calls to boost output, laying the blame on the Bush administration.
Oil prices surged after the OPEC announcement and the release of a U.S. government report
showing a surprise
drop in crude oil stockpiles. Light, sweet crude for April delivery jumped $5 to
settle at a record $104.52 per barrel on the New York Mercantile Exchange.
The 13-nation Organization of Petroleum Exporting Countries said it would maintain current
production levels because crude supplies are plentiful and demand is expected to weaken
during the second quarter.
OPEC President Chakib Khelil said the global market is being affected by what he called
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
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,
“I think it’s a mistake to have your biggest customers’ economies slowing down as a
result of higher energy prices.”
White House spokesman Dana Perino said Wednesday that Bush
was “disappointed” OPEC didn’t do more to rein in prices, which some say are pushing
the U.S. economy into recession.
Analyst John Hall, of John Hall Associates in London, said OPEC probably should have
added oil to the market as Bush had asked.
“But in this time of intense geopolitical tension, it would be difficult for Saudi (Arabia) or
any other producer to
acquiesce simply because President Bush had asked them to,” he said. “In the short
term, any true respite for the
consumer is still out of reach.”
The Net result is without dispute, Gasoline Prices Skyrocketed:
|Gas prices on April 17 or 18 2007. Data for EU countries were provided by the AA Motoring Trust. Prices are listed in U.S. dollars|
Joel Lou from the EPA cites these prices for Europe as of March, 2008
(U.S. Dollars per Gallon)
Did the Saudi’s really blame our Mortgage Fraud Scandal and Economic Collapse for the high price of Oil? No matter what, however, our shattered Economy and resulting dollar devaluation will do nothing but drive up the price of oil further.