President Bush is locked in talks with the Saudi government asking them to increase oil production, which would then lower oil prices in the US domestic market.
He was told, in no uncertain terms, that there wasn’t sufficient demand in the world for the Saudis to raise its oil production. This comes on the back of oil costing $127 per barrel which is leading to Americans paying ever increasing prices at the pump. This, and the knock-on effect, is having a sharp impact on the American economy that some say should be growing much stronger than it actually is.
Saudi Arabia Friday rebuffed President Bush’s request to immediately pump more oil to lower record prices, saying it does not see enough demand to increase production.
With the weakness of the US dollar still being played out on the world currency markets many economists cannot see an end in sight, they are saying that it is a possibility that a barrel of crude will reach $200 per barrel causing the US economy to fall ever deeper in recession. This in turn would not help John McCain in his push for the White House – I would presume that many Democrats are willing the Saudis to keep saying no to the increase so helping either Hillary Clinton or Barack Obama in their campaigns.
The greater impact of this would be that, as many would say, if America sneezes the rest of the world catches a cold – this could be the case if the US falls into deep recession the rest of the world would implicitly follow.
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