As oil prices rise, Cheney praises Saudi Arabia John Byrne

Published: Monday March 24, 2008



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Print This Email This Comment comes as gas prices hit record high in US history On his whirlwind tour of US allies in the Middle East, Vice President Dick Cheney praised oil giant Saudi Arabia for keeping their word on increasing oil production as prices of gasoline in the United States soars. Cheney told reporters in Jerusalem that the Saudis "kept their word" when they promised in 2005 to boost production. "From a capacity of 10.5 million barrels a day in 2005, they will hit 12.5 million barrels by 2009," the Wall Street Journal writes. "They are currently at 11.8 million. "Vice President Dick Cheney suggested there is little more Saudi Arabia can do to increase oil production and relieve price pressures in global markets," the Journal added. Gas prices reached an all time last week. On average, the price of gas has increased by 7 cents over the past two weeks, to a record-breaking inflation-adjusted $3.26. Asked about the US military death toll of 4,000, Cheney said it is a "tragedy" that we live in such a world, but "we do live in that kind of world." Cheney also lashed out at Iran and Syria for "doing everything they can to torpedo the peace process" by supporting militant groups Hezbollah and Hamas. During talks with Israeli and Palestinian leadership, "I reaffirmed the president's commitment to help the process forward," Cheney said. US President George W. Bush has said he hoped the two sides could strike a deal before he ends his term in January 2009. Israeli Prime Minister Ehud Olmert, who met twice with Cheney during his visit "reaffirmed his commitment to the president's vision and his willigness to do everything he can to achieve a result in 2008 although he is well aware of the difficulties," Cheney said. Oil prices slipped nearly $1 a barrel Monday as traders worried that the flagging U.S. economy would cause oil demand to soften. Oil's sharp decline started last week. Crude futures started plunging after the U.S. Federal Reserve-backed sale of Bear Stearns Cos. to JPMorgan Chase & Co. created fears of deeper economic problems. Prices dropped around 10 percent during the shortened trading week from a trading record of $111.80 hit last Monday. With AFP, AP.

