"It is a function not only of fundamentals but of this political situation in the Middle East, so there should be a solution for this political question if
stability in the market is needed."
Qatar's oil minister blamed high oil prices on "horrible" speculation and "geopolitics" rather than any shortage of supplies.
I wouldn't let producers completely off the hook, however. Record oil prices have reaped record profits for oil suppliers. There is concern that producers and refiners are holding back production to drive prices higher. Sen. Chuck Schumer (D-NY) questioned refiners this week, wondering if the tigers have changed their stripes.
"Given the past behavior of the oil companies who take advantage of natural or cyclical occurrences and raise prices even more than necessary, this requires scrutiny," Schumer wrote in a letter to the FTC.
The New York Mercantile Exchange, the International Petroleum Exchange in London, and the Singapore International Monetary Exchange, are the entities which actually set the price of oil, mindful of whatever OPEC manages to manipulate. It may have an impact on U.S. prices if U.S. refiners can be cajoled into handling more of the country's crude oil inventories which have been increasing in the past month. But, I think it will take more than jaw-boning to pry producers' hands off of their swelling bankrolls.
Besides, as the OPEC ministers assert, there doesn't seem to be evidence of market shortages which would cause demand to pressure prices to the record highs we're seeing. Nigeria has seen a disruption in some of it's production, but there are analysts who say that other suppliers should be able to cover the shortfall.
Nigeria will seem like an abstraction if Venezuela follows through on their pledge to sharply reduce the 60% of their nation's total oil exports that go to the United States and replace our interest there with China. In fact, the Bush regime's jibes against Venezuela are just jingoistic jealousy.
National Intelligence Director John Negroponte said in a Feb.2 hearing that a "combination of rising demand for energy and instability in oil-producing regions is increasing the geopolitical leverage of key producing states."
"Record oil revenues and diversification of its trading partners are further strengthening the Tehran government." Negroponte warned the senate committee.
Oil was also on Negroponte's mind as he blasted Venezuelan President Hugo Chavez for his increasing relationship with Iran. Chavez "is seeking closer economic, military and diplomatic ties with Iran and North Korea," he said. Negroponte worried aloud in his statement that Chavez is looking to dump the U.S. as an oil trading partner in favor of customers like Russia and China.
Venezuela has the largest proven oil reserves in the Western Hemisphere. High oil prices have enabled Venezuela to overcome a 2002 recession and develop a strong economy. Any notion of cajoling them into engineering a price decrease was dashed this week as leaders there asserted that the U.S. still wasn't paying enough for oil, in their view.
Hard to imagine why a country's leadership we have repeatedly threatened wouldn't want to step in and do everything they could to ensure that we are paying less for the product which is pulling their country out of economic distress. Venezuela provides eleven Central American and Caribbean nations (Barbados, Belize, Costa Rica, El Salvador, Guatemala, Haiti, Honduras, Jamaica, Nicaragua, Panama and the Dominican Republic) with crude oil. Venezuela also supplies Cuba. Venezuela's president, Hugo Chavez, has spent recent months convincing his countryfolk that the U.S. is going to invade their sovereign nation, so, Bush obliges with staged war-games in the Caribbean expected to last two months.
It should be clear to everyone by now that Bush' militarism has alienated the very sources of oil that we rely on for a steady supply at a reasonable price. Just as a change in driving habits here in the U.S. could pressure the price, a decrease in Bush's saber-rattling would unquestionably bring oil prices back down to Earth, and not just for U.S. market. A decrease in militarism by this American regime would cause a revival of the international cooperation which marked past periods of relatively low oil costs.
"If you can stop the politicians from making negative statements, I am sure you will see almost 15 dollars disappear from the price." Qatar's oil minister told reporters today.
On the other foot, a continuation of the present intimidation campaign against Iran could lead to an actual military attack which would ensure prohibitive oil prices would remain in place for years, marked by increases of over $100 a barrel. No amount of manipulation could wipe away that self-inflicted wound on our nation, come to pass as a result of the actions of this lame-duck loser.
stability in the market is needed."
Qatar's oil minister blamed high oil prices on "horrible" speculation and "geopolitics" rather than any shortage of supplies.
I wouldn't let producers completely off the hook, however. Record oil prices have reaped record profits for oil suppliers. There is concern that producers and refiners are holding back production to drive prices higher. Sen. Chuck Schumer (D-NY) questioned refiners this week, wondering if the tigers have changed their stripes.
"Given the past behavior of the oil companies who take advantage of natural or cyclical occurrences and raise prices even more than necessary, this requires scrutiny," Schumer wrote in a letter to the FTC.
Besides, as the OPEC ministers assert, there doesn't seem to be evidence of market shortages which would cause demand to pressure prices to the record highs we're seeing. Nigeria has seen a disruption in some of it's production, but there are analysts who say that other suppliers should be able to cover the shortfall.
Nigeria will seem like an abstraction if Venezuela follows through on their pledge to sharply reduce the 60% of their nation's total oil exports that go to the United States and replace our interest there with China. In fact, the Bush regime's jibes against Venezuela are just jingoistic jealousy.
National Intelligence Director John Negroponte said in a Feb.2 hearing that a "combination of rising demand for energy and instability in oil-producing regions is increasing the geopolitical leverage of key producing states."
"Record oil revenues and diversification of its trading partners are further strengthening the Tehran government." Negroponte warned the senate committee.
Oil was also on Negroponte's mind as he blasted Venezuelan President Hugo Chavez for his increasing relationship with Iran. Chavez "is seeking closer economic, military and diplomatic ties with Iran and North Korea," he said. Negroponte worried aloud in his statement that Chavez is looking to dump the U.S. as an oil trading partner in favor of customers like Russia and China.
Venezuela has the largest proven oil reserves in the Western Hemisphere. High oil prices have enabled Venezuela to overcome a 2002 recession and develop a strong economy. Any notion of cajoling them into engineering a price decrease was dashed this week as leaders there asserted that the U.S. still wasn't paying enough for oil, in their view.
Hard to imagine why a country's leadership we have repeatedly threatened wouldn't want to step in and do everything they could to ensure that we are paying less for the product which is pulling their country out of economic distress. Venezuela provides eleven Central American and Caribbean nations (Barbados, Belize, Costa Rica, El Salvador, Guatemala, Haiti, Honduras, Jamaica, Nicaragua, Panama and the Dominican Republic) with crude oil. Venezuela also supplies Cuba. Venezuela's president, Hugo Chavez, has spent recent months convincing his countryfolk that the U.S. is going to invade their sovereign nation, so, Bush obliges with staged war-games in the Caribbean expected to last two months.
It should be clear to everyone by now that Bush' militarism has alienated the very sources of oil that we rely on for a steady supply at a reasonable price. Just as a change in driving habits here in the U.S. could pressure the price, a decrease in Bush's saber-rattling would unquestionably bring oil prices back down to Earth, and not just for U.S. market. A decrease in militarism by this American regime would cause a revival of the international cooperation which marked past periods of relatively low oil costs.
"If you can stop the politicians from making negative statements, I am sure you will see almost 15 dollars disappear from the price." Qatar's oil minister told reporters today.
On the other foot, a continuation of the present intimidation campaign against Iran could lead to an actual military attack which would ensure prohibitive oil prices would remain in place for years, marked by increases of over $100 a barrel. No amount of manipulation could wipe away that self-inflicted wound on our nation, come to pass as a result of the actions of this lame-duck loser.
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
