U.S. Energy Secretary says more oil needed to tame price
JEDDAH, Saudi Arabia (Reuters) - Producers must pump more to ease the pain felt in the United States and elsewhere from record fuel prices, U.S. Energy Secretary Sam Bodman said on Saturday. He blamed tight supplies for fuelling a rally which lifted..."
JEDDAH, Saudi Arabia (Reuters) - Producers must pump more to ease the pain felt in the United States and elsewhere from record fuel prices, U.S. Energy Secretary Sam Bodman said on Saturday.
He blamed tight supplies for fuelling a rally which lifted oil close to $140 a barrel this week, sparking protests across Asia and Europe.
"Anything that will add supply to the market is important," he said.
"While increases in near term oil production are welcome and necessary, fundamentally the market needs to see investment in increasing the longer term production capability."
Bodman, representing the world's biggest oil consumer, was in Jeddah for a Saudi-hosted emergency meeting of energy powers on Sunday.
"The world faces an extraordinary time that, in my view, demands responsible action from both consuming and producing nations," he said.
Top oil exporter Saudi Arabia already has vowed to boost supply by 200,000 barrels per day (bpd) in July -- to the highest rate in decades.
And other major producers with the ability to pump more may join in, according to a senior Gulf OPEC official.
Bodman said prices would soar higher if more oil was not forthcoming.
"In the absence of any additional crude supply, for every one percent of crude demand, we will expect a 20 percent increase in price in order to balance the market."
"These are very high oil prices. They have a severe impact certainly on the families of the United States, but also on the families of other countries as well."
JEDDAH, Saudi Arabia (Reuters) - Producers must pump more to ease the pain felt in the United States and elsewhere from record fuel prices, U.S. Energy Secretary Sam Bodman said on Saturday. He blamed tight supplies for fuelling a rally which lifted..."
JEDDAH, Saudi Arabia (Reuters) - Producers must pump more to ease the pain felt in the United States and elsewhere from record fuel prices, U.S. Energy Secretary Sam Bodman said on Saturday.
He blamed tight supplies for fuelling a rally which lifted oil close to $140 a barrel this week, sparking protests across Asia and Europe.
"Anything that will add supply to the market is important," he said.
"While increases in near term oil production are welcome and necessary, fundamentally the market needs to see investment in increasing the longer term production capability."
Bodman, representing the world's biggest oil consumer, was in Jeddah for a Saudi-hosted emergency meeting of energy powers on Sunday.
"The world faces an extraordinary time that, in my view, demands responsible action from both consuming and producing nations," he said.
Top oil exporter Saudi Arabia already has vowed to boost supply by 200,000 barrels per day (bpd) in July -- to the highest rate in decades.
And other major producers with the ability to pump more may join in, according to a senior Gulf OPEC official.
Bodman said prices would soar higher if more oil was not forthcoming.
"In the absence of any additional crude supply, for every one percent of crude demand, we will expect a 20 percent increase in price in order to balance the market."
"These are very high oil prices. They have a severe impact certainly on the families of the United States, but also on the families of other countries as well."
1 comment:
Oil is just amazing product.
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