Bush's Jawboning Works! Saudis to Ramp Up Oil Production! Dems Screwed, Again!

http://www.foxnews.com/story/0,2933,367017,00.html

Saudis to Ramp Up Oil Production, Reports Say
Saturday, June 14, 2008

RIYADH, Saudi Arabia ? Saudi Arabia's oil minister on Sunday will
address reports that the world's largest oil-producing country is set
to raise production by about 500,000 barrels per day, his adviser
said.

The increase would bring Saudi Arabia's oil production to 10 million
barrels a day, the country's highest ever, according to reports by The
New York Times and the Middle East Economic Survey, an industry
publication.

Adviser Ibrahim al-Muhanna told The Associated Press on Saturday that
he could not confirm the reports, but added: "Minister Ali al-Naimi
will clarify this tomorrow."

Saudi Arabia has called for a meeting of oil producing and consuming
countries on June 22 in the port city of Jiddah to discuss ways of
dealing with soaring energy prices.

The New York Times report on Saturday, citing unnamed analysts and oil
traders briefed by Saudi officials, said the production increase was
to be announced following the meeting.

The Middle East Economic Survey said Friday that Saudi Arabia was
considering a production increase, but did not provide a source.

The Saudis are concerned that sustained high oil prices will
eventually slacken the world's appetite for oil, affecting them in the
long run.

Crude prices have reached record highs, surpassing $139 per barrel on
June 6 after surging nearly $11 in the biggest single-day price leap
ever.

The prices had receded by Friday, with the benchmark light, sweet
crude for July delivery falling $1.88 to settle at $134.86 on the New
York Mercantile Exchange. In London, July Brent crude lost $1.84 to
settle at $134.25 on the ICE Futures exchange.

Meanwhile, the average national price for a gallon of regular gas in
the U.S. rose to a record $4.066 Friday, from $4.06 a day earlier,
according to AAA and the Oil Price Information Service. Diesel also
set a new record, rising 0.2 cent to $4.796 a gallon.

Even with record highs in the U.S., prices remain far cheaper than in
Europe and some parts of Asia. Oil-related protests have swept Europe,
with fishermen staging strikes in Spain, Portugal, France, Belgium and
Italy. Several Asian countries, including India, Indonesia and
Malaysia, have slashed fuel subsidies, raising prices for millions of
consumers and sparking demonstrations.

Wrapping up a summit in Japan on Saturday, finance ministers from the
Group of Eight nations ? Britain, Canada, France, Germany, Italy,
Japan, Russia and the U.S. ? urged oil-producing nations to increase
production.

The current president of the Organization of Petroleum Exporting
Countries, Chakib Khelil, has said that the cartel will make no new
decision on production levels until its Sept. 9 meeting in Vienna.
OPEC ministers often follow the lead of the Saudis when discussing
whether to increase production to take the pressure off rising prices.

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