U.S. And Britain Shift The Blame For High Oil Prices

[Purveyor]

LONDON (Reuters) - Britain and the United States blame OPEC for record high oil prices that have exacerbated a global economic slowdown, but some analysts believe the cause for oil's run-up may lie closer to home.

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"Traditionally, speculators and OPEC ... are an easy scapegoat, but I think it's totally unfair," said Olivier Jakob, analyst at Petromatrix.

Oil climbed to a record high of $113.93 on Tuesday, up 17 percent from the start of the year.

Brown, who is to fly to the United States on Wednesday for talks with Bush, said he wanted to develop a collective plan to bring down oil prices.

"We are not producing enough oil ... and we can take collective action to persuade OPEC and others to get the oil price down," Brown said in an interview on Sky Television.

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THE BUCK STOPS HERE

Analysts say politicians are ignoring the influence the global economy, especially the dollar, is having on oil.

"The energy markets seem to be completely wrapped up in the dollar's near-term prospects," said MF Global Energy in its daily research note.

The dollar has fallen to record lows against the euro, dragged lower by fears about the U.S. economy.

A weak dollar tends to raise prices for commodities denominated in that currency. They become relatively cheap for non-dollar buyers and offer investors, such as pension funds, an inflation hedge.

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http://www.reuters.com/article/topNews/idUSL1573097020080415?feedType=nl&feedName=ustopnewsevening

[Arctic Dave]

1. It's the dealers fault, says the junkie.

[gratuitous]

2. So, all those folks predicting that oil prices would go up

So, all those folks predicting that oil prices would go up thanks to the illegal invasion of Iraq were absolutely right but for all the wrong reasons. Just a lucky guess, in point of fact.

[Kip Humphrey]

3. You can add grain and iron ore to those commodities dominated by the dollar and its decline in value