US concerned about "very high" oil prices: Bodman
WASHINGTON (Reuters) - U.S. Energy Secretary Sam Bodman on Wednesday said record high oil prices were of "great concern" to the Bush administration but declined to say whether OPEC should pump more oil to cool sizzling markets.
"The signs are that there are issues related to the amount of supply," Bodman told reporters hours after oil touched a record peak of $89 a barrel, adding that prices were "very high."
"I would think it would have an impact on the decision making - not just OPEC but all of the exporting countries. I think the message has become reasonably clear," Bodman said.
Oil has climbed more than 10 percent since last week on fears of a winter supply crunch, a falling dollar, and rising tensions between Turkey and Kurdish rebels in Iraq, renewing worries soaring energy costs could damage the global economy.
Bodman declined to say whether he thinks the Organization of the Petroleum Exporting Countries needs to increase production to help bring down prices, which are approaching their $90.46 inflation-adjusted peak of 1980.
"I don't speculate on how OPEC runs their business - they have to decide," Bodman said when asked if the producer group should convene an emergency meeting to address output policy.
Bodman ruled out any imminent action to release supplies from emergency crude oil stockpiles to boost supply.
The United States' economy is already facing headwinds from the meltdown in the subprime mortgage market, and experts said soaring energy costs could worsen the economic outlook.
U.S. consumers will likely pay higher prices for gasoline and heating supplies this winter because of high oil prices, Bodman said.
Bodman said President George W. Bush is likely concerned about oil prices and their economic impact and "I expect him to raise it with me when I see him the next time."
The Bush administration has made weaning U.S. consumers off foreign oil supply a top priority through an ambitious plan to cut U.S. gasoline use some 20 percent by 2010 through increased ethanol use and higher fuel-efficiency standards for cars.
"We are doing everything that we know how to do in terms of trying to deal with this," Bodman said.
There are signs that OPEC could weigh an output hike next month to cool the red hot market.
Nigeria's oil minister, Odein Ajumogobia, told Reuters Wednesday that OPEC could call a formal meeting November 17 when ministers meet in Saudi Arabia for a heads of state conference, nearly three weeks earlier than planned.
Bodman said he has not discussed oil supplies with any OPEC officials "in the last couple of weeks." Continued...
