August 04, 2004

Who's Responsible for the Energy Costs?

Juan Cole finds Cheney's accusations that the Democrats (and in particular, John Kerry and John Edwards) are responsible for the high energy prices funny. Cole points out that it is actually Cheney's policies that are responsible for the increased energy prices.

According to Reuters today, the crude oil prices have reached a new high and probably will go higher.

Oil prices have risen by more than one-third since the end of 2003 on worries that accelerating global demand has left supplies tightly stretched with little leeway for disruption. Some analysts fear that the relentless rise could take prices above $50 a barrel, with more damaging repercussions for the global economy.

...Oil's latest boost was triggered on Tuesday when the head of the OPEC producers' cartel said there was no spare oil immediately available to cool red-hot prices.

...Fears of a major glitch in the supply chain at a time when global oil demand is growing at the fastest pace in more than two decades were heightened by attacks on an oil pipeline in Iraq.

..."OPEC's spare capacity is at a historic low level," said Tony Nunan, the manager at Mitsubishi Corp's international petroleum business.

"Even if something that could disrupt oil exports, like the Iraq war and Venezuela's strike, happens again, OPEC can't boost production immediately to offset it this time."

By the fourth quarter, the impact of the higher oil prices should be really starting to come back to be a drag on the economy. Do you think that Bush's buddy Prince Bandar will be able to pull his friend's bacon out of the fire? Just think, his little war to make the world safer for America has done such a good job of making the world more dangerous for America. Watch for Cheney to go around blaming it all on Kerry.

Posted by Mary at August 4, 2004 08:02 AM | Economy | Technorati links |

Oh, oil prices will go _well_ above $50 a barrel. Possibly not immediately, but in the next few years it's likely to pass $100 a barrel.

Posted by: felice at August 5, 2004 12:27 AM