Saudi summit to confront oil anger

TEXT OF STORY

Renita Jablonski: Ministers from oil-producing and oil-consuming nations are due to meet for an emergency summit in Saudi Arabia this Sunday. From London, Stephen Beard reports.

Stephen Beard: The Saudis set up the summit to deflect the growing anger of oil-consuming countries. The British Prime Minister’s described OPEC as “scandalous.” The Australian leader called for the G-8 to “take a blow torch” to the cartel.

But it’s far from clear that the weekend meeting in Jeddah will ease the record price of oil. It could just be all talk, says Carola Hoyos of The Financial Times. And that would make matters worse:

Carola Hoyos: Calling such a meeting raises expectations that the Saudis can do something about the high oil prices. If we get to Jeddah on Sunday and in fact nothing happens, the market will very possibly go up.

The Saudis and other OPEC members argue the main reason for the rising price of oil is not insufficient supply, but speculation and the weakness of the dollar.

In London, this is Stephen Beard for Marketplace.