High oil prices tough on US economy - Bush

HIGH PRICES: Bush, pictured, said high oil prices were tough on the US economy. (Getty Images)

US president George W. Bush said on Tuesday oil prices were "very high" and tough for the US economy to bear.

He said he would discuss the issue with the king of Opec powerhouse Saudi Arabia. Oil prices are around $95 a barrel.

Opec should keep in mind the effect of high energy costs on the economy when it considers output policy, Bush said during a visit to Saudi Arabia, the world's largest oil exporter.

"I would hope that as Opec considers different production levels that they understand that if.... one of the biggest consumers' economy suffers it means less purchases, less oil and gas sold," Bush said at a round table meeting with entrepreneurs.

Bush said he would talk to the Saudi king later on Tuesday "about the fact that oil prices are very high, which is tough on our economy".

Several Opec officials have said the group's ability to tame oil prices that have reached $100 per barrel was limited.

The group would raise oil output if needed at meetings on February 1 and March 5, Opec secretary-general Abdullah Al-Badri told newswire Reuters on Monday.

Supply was sufficient for now, he said, and he attributed rising prices to speculation. (Reuters)

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Tax Rationing
Posted by Wing Sang Cheung, Auckland, New Zealand on Saturday 9 August 2008 at 09:46 UAE time

Tax Rationing can bring crude oil price down as much as we want. Since crude oil supply is now quite inelastic, Tax Rationing will not push gas price up but will enable governments of the world to generate large amount of revenue to fuel the economy.

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