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US urges oil output boost to ease prices

By Agence France-Presse
Tuesday, February 22, 2011 16:09 EDT
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RIYADH – US Deputy Secretary of Energy Daniel Poneman on Tuesday called on oil producers to boost output in a bid to ease crude prices, which struck $108 over unrest in the Middle East.

“We think that the proper response (to the high prices) is that producers respond to those price signals and see the need for more production and bring that product to the market,” Poneman told reporters in Riyadh.

“When producers bring product to the market, price starts to subside,” the US official said on the sidelines of a producer-consumer conference in the Saudi capital.

“All oil producers need to respond… expect all of them to respond.”

Brent prices broke past $107 in Asian trade Tuesday as violence in Libya and Bahrain threatened to destabilise the key oil-producing Middle East and North African regions.
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Brent crude rose over $108 per barrel on Tuesday afternoon, surpassing two-year highs reached on Monday, while the OPEC basket soared to above $100 a barrel.

Poneman said the United States, the world’s largest energy consumer, was watching with concern the unrest sweeping the Middle East and its impact in driving oil prices to high levels.

The US official also said economic recovery could suffer should crude prices keep rising.

Poneman is in the Saudi capital to sign a producer-consumer charter aimed at limiting sharp fluctuations in oil prices and which also covers issues of supply and demand, transparency and regulations.

Two member states of the Organisation of Petroleum Exporting Countries said on Tuesday that the producers cartel will act when necessary if the ongoing violence disrupts supplies.

“We are watching the situation and ready to act when necessary,” said UAE Energy Minister Mohamed al-Hamli, adding OPEC was especially concerned about developments in Libya as the African nation was a member of the organisation.

Kuwait’s Oil Minister Sheikh Ahmad Abdullah al-Sabah also said OPEC would act if prices go too high, but did not provide a specific figure.

Agence France-Presse
Agence France-Presse
AFP journalists cover wars, conflicts, politics, science, health, the environment, technology, fashion, entertainment, the offbeat, sports and a whole lot more in text, photographs, video, graphics and online.
 
 
 
 
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  • hourglass1

    when the price is right, big oil will grease d.c. … and fields are ready to go …
    for some more short-term big-time profits …

  • Anonymous

    what is too high a price of oil?

  • http://pulse.yahoo.com/_3QIJ4LGZX6PZOJSD57QIC3NRAA Straw

    LOL

    Hey, guys, could you take a break from burning your countries to the ground and pump some oil?

  • Anonymous

    Another idea: go after Wall Street and the speculators who are driving up prices for no good reason whatsoever other than to line their own pockets at our expense.

  • Anonymous

    200 per barrel then the USA will amazingly discover vast oil fields in Alaska. These events are part of a 50 year plan to bankrupt the world and instal a new world order with a new currency

  • Anonymous

    American idea of a government controlled “free market.”

  • Mr. Neutron

    Sure, oil exporter nations would love to pump more oil at a low price, rather than wait till it’s worth much, much more.
    As long as the oil-addicted countries ask nicely.

    How’s that large SUV working out ?

  • Anonymous

    The cheaper oil gets the more mass innocent people are murdered, poisoned, and ripped off. It’s time to stop giving oil companies welfare to poison our planet through “subsidies” and war. It’s time to show our dumbed down repulican and blue dog followers that the real price of gas is around $20 a gallon. We’re just paying through nose with our taxes, illegal war and economic disaster. It’s time to shift our resources in proven alternatives. Oil companies take the welfare we give them and buy up new patents that could save our planet for future generations. The welfare we give oil companies falls in the hands of fascist operators like the koch brothers who use that welfare to lobby the corrupt repulicans into acting against our own society and best interests.

  • Anonymous

    Addicts are in no position to dictate terms.

  • Anonymous

    The addict’s obsession with the price of their habit.

  • Anonymous

    Here comes the pain. If they can’t end unions, then they are going to get us another way. Noise about food shortages is becoming common, speculators are peeing in their pants over the unrest in Libya. The Second (5th?) fleecing is about to begin. Expect “Budget shortfall” to become the top searched phrase soon

  • Anonymous

    We’re on the downhill side of the supply curve and the demand curve is still climbing. The OPEC countries are all building nuclear power plants because in a few years oil be be worth a lot more than nuclear power and they can sell the oil. They actually plan for the future as opposed to the US who spends our time arguing about the future and doing nothing.

  • http://pulse.yahoo.com/_JETED5IFXLBHDCPATGS3JUS5HU Dip Stick

    Wow, Shell oil announces we are in Peak oil the other day, finally making it semi-official, and some dipstick, not self referential, says pump more. That’s kinda the whole problem with peak oil, no spare capacity for production. Additionally, each year over year’s production will go down from the peak oil moment. No wonder we all completely feel that we’re Effed in the A, because if this is the typical response to such a complicated problem, we are Effed in the A.

  • http://profiles.yahoo.com/u/J3V6T77SBBURILIWTHRHY3NOLU James

    I don’t understand why the U.S. being the Worlds biggest hog of the Earths energy sources, thinks that the rest of the World should be obligated to provide the U.S. with all the oil it wants. Can’t other countries get a hint? If you want to put the U.S. in its place, start cutting the oil off. Most countries hate the U.S. but can’t seem to get a handle on how to control it. The U.S. isn’t the only user of oil. China could easily make up the difference in the purchasing of oil. Just get the U.S. out of other countries affairs.

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