Oil Hits $104; OPEC Won't Budge

Cartel president blames 'mismanagement' of US economy for rising prices
By Kevin Spak,  Newser Staff
Posted Mar 5, 2008 3:57 PM CST
Oil Hits $104; OPEC Won't Budge
An old barrel and other trash litter a dry oil drainage pit Tuesday, March 4, 2008, in the Sakhir, Bahrain, desert. OPEC has virtually ruled out pumping more oil to ease record-high prices, oil ministers said Tuesday on the eve of a key meeting, contending supplies are ample and there's no compelling...   (Associated Press)

Crude oil rose to a record $104.52 a barrel today after OPEC decided to hold production steady. “The oil market is currently stable,” said Saudi Arabia’s oil minister. “There is no need to increase even one barrel of oil.” The cartel blamed sky-high prices on “tremendous speculation,” the Wall Street Journal reports. Oil futures were up $5 on the day.

President Bush yesterday called for production increases to help stave off recession in the US; OPEC's president said "mismanagement" of the US economy is more responsible for higher prices than a lack of demand. But, the Journal reports, OPEC might reduce output if the US economy stalls badly enough to temper demand, especially if oil-hungry developing nations are pulled downward. (More oil prices stories.)

Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X