Saturday, December 5, 2009

Afghanistan and Israeli settlements vs. oil

Saudi Arabia's oil minister said Saturday that current global oil prices are "perfect," as several key Arab OPEC members indicated the group was unlikely to change output levels when it meets later this month.

The Organization of the Petroleum Exporting Countries, which supplies roughly 35% of the world's crude, has held its quotas unchanged since last year's record 4.2 million barrels per day in cuts.

"The price is perfect," said Saudi Oil Minister Ali Naimi, whose country sits atop the world's largest proven oil reserves and is OPEC's most influential member.

Speaking on the sidelines of the annual meeting of the Organization of Arab Petroleum Exporting Countries, Naimi said the market is stable and "volatility is at a minimum."

Since last December, OPEC has focused on boosting compliance with output quotas of its 12 member states. The group's approach has helped oil prices rebound to almost $80 per barrel recently, after they collapsed last year as the world's worst recession in decades sapped demand for crude.

While Obama focuses on face saving in Afghanistan and Israel's settlement policy, he has no comment as our "allies" in OPEC are doubling the price of oil.

Which of those three do you think has the most impact on the U.S. economy?

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