OPEC has rebuffed American calls for increased crude oil production to curb rising energy prices. The cartel, while deciding against cutting production in a bid to offset a seasonal slow down in oil prices, was unconvinced that there was an oil supply shortfall in the global economy. Reiterating its position that the market remained well supplied, OPEC President Chakib Khelil argued that the sharp rise in oil prices was caused by mismanagement of the US economy and financial speculation. This view has been bolstered by energy analysts who also agree that the global economy is well supplied1.

• 1. “Oil Hits $104 as OPEC Rebuffs Bush”, New York Times, March 5, 2008, at www.nytimes.com/.../05cnd-opec.html?em&ex=1204866000&en=173ea2465113b66e...