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Don`t hurt US economy, Bush tells OPEC
Washinton, Sept 26: One day after OPEC`s surprise decision to cut oil supplies, US President George W Bush pressed Saudi Arabia and other cartel members on Thursday not to act in ways that threaten the US economy.
Washinton, Sept 26: One day after OPEC's surprise decision to cut oil supplies, US President George W Bush pressed Saudi Arabia and other cartel members on Thursday not to act in ways that threaten the US economy.
The president's highly unusual message to OPEC underscored the administration's concerns about the potential impact of higher energy prices on the nation's fragile economic recovery in the run-up to next year's presidential election.
"My reaction is that I would hope our friends in OPEC don't do things that would hurt our economy," Bush told reporters at the White House when asked about OPEC's decision, which could raise fuel costs this winter. White House spokesman Scott McClellan said the administration was consulting OPEC members, who control half the world's oil trade, and asserted that "market forces" should determine oil prices.
"Oil prices should be determined by market forces so that we can ensure adequate supplies. Producing and consuming countries both have an interest in ample, affordable energy supplies," McClellan said. "Obviously we have ongoing and regular consultations with major oil producers around the world and those continue."
The Organization of the Petroleum Exporting Countries agreed on Wednesday to reduce production for 10 members by 900,000 barrels per day to 24.5 million bpd, effective Nov. 1. It cited rising inventories, a fall in prices this month and the gradual return of Iraqi crude to the world market.
World oil prices surged more than a dollar after OPEC's decision, with US light crude settling Thursday at $28.29 a barrel and London Brent at $26.81.
Analysts said the output pact sent a powerful message that the Saudi-led cartel was determined to defend crude near the top of its $22-$28 price target, even at the risk of upsetting Washington.
Riyadh has come under heavy criticism in the United States since the September 11, 2001, attacks, but won high marks from the Bush administration for opening the pumps before the US-led invasion of Iraq.
Bureau Report
"My reaction is that I would hope our friends in OPEC don't do things that would hurt our economy," Bush told reporters at the White House when asked about OPEC's decision, which could raise fuel costs this winter. White House spokesman Scott McClellan said the administration was consulting OPEC members, who control half the world's oil trade, and asserted that "market forces" should determine oil prices.
"Oil prices should be determined by market forces so that we can ensure adequate supplies. Producing and consuming countries both have an interest in ample, affordable energy supplies," McClellan said. "Obviously we have ongoing and regular consultations with major oil producers around the world and those continue."
The Organization of the Petroleum Exporting Countries agreed on Wednesday to reduce production for 10 members by 900,000 barrels per day to 24.5 million bpd, effective Nov. 1. It cited rising inventories, a fall in prices this month and the gradual return of Iraqi crude to the world market.
World oil prices surged more than a dollar after OPEC's decision, with US light crude settling Thursday at $28.29 a barrel and London Brent at $26.81.
Analysts said the output pact sent a powerful message that the Saudi-led cartel was determined to defend crude near the top of its $22-$28 price target, even at the risk of upsetting Washington.
Riyadh has come under heavy criticism in the United States since the September 11, 2001, attacks, but won high marks from the Bush administration for opening the pumps before the US-led invasion of Iraq.
Bureau Report