Big fund money and its effect on oil markets - May. 16, 2008
Why $120 oil is good, and speculators don't matter - May. 8, 2008
Senate Committee on Homeland Security and Governmental Affairs
Senate Committee on Homeland Security and Governmental Affairs
Senate Committee on Homeland Security and Governmental Affairs
Oil producers urged to boost output as prices soar
"Oil producers urged to boost output as prices soar
Joseph Coleman / Associated Press
AOMORI, Japan -- Leading energy-consuming nations urged oil producers Saturday to boost their output to counter soaring prices threatening the world economy, while they pledged to develop clean energy technologies and improve efficiency. The five nations -- the United States, China, Japan, India and South Korea -- differed, however, on how urgently
oil subsidies should be phased out,
with Washington backing bold movement while India and China warned of political and economic instability.
Cabinet ministers from the five countries, which account for more than half the world's consumption of energy, agreed that the sharp surge in oil prices was a menace to the world economy, and that more petroleum should be produced to meet rising demand..."
"...Analysts also have cited the decline of the U.S. dollar, fears about the long-term supply of oil and aggressive speculation as factors in rising prices..."
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Interesting forces at work here. High oil prices benefit the oil companies, and environmentalists that want to see consumption reduced, but the rising cost of food and transportation is causing big problems for those with limited funds. Is the US trying to set an example by letting speculators drive our prices up? If we get OPEC to increase output will India and China just buy it up and sell it at subsidized prices to their ever more mobile populations? If the US was serious about using high prices to reduce consumption they wouldn't be lobbying OPEC to pump out more oil.
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