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From the financial times... The interesting part of this article to me is that it's not necessarily supply and demand thats causing the high prices. We need to stop treating oil like a commodity that lets investors dip their hand into our pockets...
Bush tells Opec oil price is hurting economy
By Javier Blas and Ed Crooks in Vienna
Published: March 6 2008 02:00 | Last updated: March 6 2008 02:00
Washington attacked the Organisation of Petroleum Exporting Countries for its refusal to increase oil production yesterday after an unexpected drop in US crude oil inventories pushed prices to a record high.
In strongly worded criticism, George W. Bush, the president accused the oil producers' cartel of damaging the US economy. Mr Bush said oil prices were "making it harder here in America for working families to save and for farmers to be prosperous and for small businesses to grow".
He said he was "disappointed" by Opec's decision to leave production unchanged in the face of record prices. US oil yesterday jumped $5.04 to a record $104.56 a -barrel, before closing at $104.52.
Opec said in its communiqué yesterday that the -market was "well-supplied, with current commercial oil stocks standing above their five-year average". The cartel also "noted, with concern, that the current price environment does not reflect market fundamentals".
Mr Bush said: "It should be obvious to all that demand is outstripping supply and it's making prices go up." US crude oil stocks unexpectedly fell last week by 3.1m barrels to 305.4m barrels, nearly 6 per cent below last year's level.
Chakib Khelil, Opec's president, blamed the rise in oil prices on speculation associated with the weakness of the US dollar. "What is happening in the oil market is due to the mismanagement of the US economy," he said.
Investors have been pouring into commodities, particularly oil, to hedge against the fall of the dollar driven by cuts in US interest rates.
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