Yesterday, at about 03:50 AM EST, in the post on this site
"What's up?? OPEC Agrees to Production Cuts Yet Prices are Down!"
made the following observations on OPEC's announcement
that it would cut production by 2.1 million barrels/day:
"Promptly after OPEC's announcement of their 1.2 million
production cut, the International Energy Agency which advises
26 countries on energy policy said the oil cartel's decision was ill timed
because demand will increase as the heating season
approaches. Executive Director Claude Mandil expressed his
outrage : "I think this cut comes at the worst time
possible. I don't like the idea of OPEC trying to defend prices
of $60 a barrel. That is not helpful to consumers and poorer
The post went on "Compare this to our government's silence,
especially the silence of our Department of Energy. In saying
nothing they reminded us where their true loyalties lie. Clearly
what is bad for OPEC is bad for the oil industry. And the rest
of us be damned."
Then, lo and behold, later in the afternoon on the same day
in an interview with CNBC and as reported by Reuters
President Bush was quoted as saying "I would hope that
OPEC nations understand that high prices of oil could wreck
economies." According to Reuters it was the strongest language
that Bush has used regarding OPEC since his 2000 campaign
promise to "jawbone" OPEC countries to produce more oil.
Incidentally, since that time the price of oil has jumped some
Then continuing in the same theme as the early morning post
he continued "What we have got to do in this county, however,
is welcome low oil prices but continue to spend
money to make sure we become less dependent on oil".
Did the President or his staff read the post? Who knows.
Let's just ascribe the similarity of positions to issues that are 'in the air'.
But what is gratifying is that after some six years and massive oil price
increases the President has finally gotten over his lockjaw affliction and
finally feels up to jawboning OPEC. Could an election be at hand?
Anyway you read it first on Huffington Post.
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