Bush calls for OPEC nations to increase oil output

[Praxius]

http://www.cbc.ca/world/story/2008/01/15/bush-saudi.html

U.S. President George W. Bush urged OPEC nations during a visit to Saudi Arabia on Tuesday to put more oil on the world market and warned that soaring prices could cause an economic slowdown in the United States.

"High energy prices can damage consuming economies," the president told a small group of reporters travelling with him in the Mideast.

In a stern warning to Iran days after a Jan. 6 confrontation with U.S. warships in the Persian Gulf, Bush also put Tehran on notice that it needs to be careful.

The president said it would not matter to him whether an attack against an American vessel resulted from an order by the government in Iran or a rash decision by an Iranian boat captain.

"It's not going to matter to me one way or another," Bush said. "If they hit our ships, we will hold Iran responsible."

U.S. officials claim Iranian speedboats swarmed three navy warships in the Strait of Hormuz, the narrow waterway that is the only entry and exit to the Persian Gulf.

They said U.S. navy commanders were considering firing warning shots, before the retreat of the five Iranian speedboats, which the Pentagon said were operated by the elite Revolutionary Guards.

Iran has denied that its boats threatened the U.S. vessels, saying the incident was a normal occurrence, and accused Washington of fabricating video and audio it released. Iran's government has released its own video, which appeared to be shot from a small boat bobbing at least 100 metres from the American warships.

Bush spoke to reporters before meeting late Tuesday with Saudi King Abdullah, whose country holds the world's largest supply of oil. Bush said U.S. consumers are feeling the pain of rising oil prices, which topped $100 US a barrel this month.

"When consumers have less purchasing power, it could cause the economy to slow down," Bush said.

"I hope OPEC nations put more supply on the market," he added. "It would be helpful."

At the same time, he noted that the higher prices are guided by supply and demand, and that there is little excess capacity in the marketplace.

The Organization of Petroleum Exporting Countries next meets Feb. 1 in Vienna, Austria, to consider increasing output.

 

[Praxius]

Additional Related News:

Saudi Arabia will boost oil output when market warrants: official

http://www.cbc.ca/world/story/2008/01/15/saudioil.html

Saudi Arabia will raise oil production only when the market justifies it, the kingdom's oil minister said Tuesday, in response to U.S. President George W. Bush's request that OPEC nations increase output to reduce world oil prices.

"Our interest is to keep oil supplies matching demand with minimum volatility in the oil market," Oil Minister Ali Naimi told reporters in Riyadh. "We will raise production when the market justifies it. This is our policy."

Naimi said inventory levels appear to be "normal," adding, "we want the inventories to be healthful, but we don't want it to be extremely high or extremely low."

Earlier Tuesday in Riyadh, Bush warned that soaring oil prices could cause an economic slowdown in the United States.

"High energy prices can damage consuming economies," the president told a small group of reporters travelling with him in the Mideast.

Saudi Arabia holds the world's largest supply of oil. Bush said U.S. consumers are feeling the pain of rising oil prices, which topped $100 US a barrel this month.

"When consumers have less purchasing power, it could cause the economy to slow down," Bush said. "I hope OPEC nations put more supply on the market," he added. "It would be helpful."

The Organization of Petroleum Exporting Countries next meets Feb. 1 in Vienna, Austria, to consider increasing output.

OPEC oil accounts for about 40 per cent of the world's needs, and OPEC ministers often follow the lead of the Saudis when discussing whether to increase production to take the pressure off rising prices.

The Saudis' views carry great weight because of its large share of output.

I like the response. It helps make sure that the US doesn't have a freebe card to get them out of their mess of oil addiction. Just because the US is suffering from oil prices, doesn't mean the rest of the world is, which they view as the market, not just the US. Sure even Canada has high prices, but we're taking more steps to switch our energy sources.

What is the US doing? Why just a few days ago in Michigan, they had an auto show filled with more big cars and SUV's which guzzle more fuel and very little to show for fuel effective vehicles. If they're not going to take the steps to shift from oil, then it's their own fault.

Plus I bet if they stopped a war or two, their cost of oil would drop considderably, since they need oil to fuel vehicles and equipment.

They should learn to correct their gluttonous ways rather then try and buy their way through their troubles in a delussional manner which doesn't solve the long term issues that Oil will be getting more and more expensive.

 

[Tonington]

State of the Union 2006- Bush proclaims America is addicted to oil. The best way to break this addiction according to Bush, is through technology.

Throughout 2007. Fuel standards are introduced, after staunch opposition in both the senate and congress. California is denied the first waiver request ever, one which would use technology available to increase fuel efficiency, and thus help alleviate the pains of addiction.

Today, President bush asks drug producers to produce more of the addictive substance so the pushers can provide it at a lower price.

WTF???

 

[#juan]

Might be a good idea if the U.S. used a bit less oil. The big three auto makers are still building large V8 powered pick-ups and SUVs that burn gas like it was free. What Bush is saying is: "Produce more oil so we can use all we like" The U.S. is already using far more than their share of every resource in the world. It is time they stopped.

 

[gerryh]

Is this guy brain dead? He just informed, what he considers his biggest enemy's, how to sink the states. :roll:

 

[Praxius]

Is this guy brain dead? He just informed, what he considers his biggest enemy's, how to sink the states. :roll:

Actually Saudi Arabia and the guys who run the oil are old family pals with the Bush's. There's a long list of connections between them all prior to him taking the job as president.

Of course him shooting his mouth off about how bad they need oil will certainly be picked up on by enemies of the US.

I wonder what would happen if Canada, who's 2nd to Saudi Arabia for oil production, decided to stop sending oil to the US? Now that would be a pickle.

 

[darkbeaver]

I say let them have all the oil they want, it'll get them to the destination faster, double the production and slash the price to a new improved low low jumbo deal, don't wait act now call the number on your screen, great savings.