QATARI OPEC OFFICAL: THERE IS A GLUT OF OIL - AND - THE USA SHOULDN'T ASK US TO PRODUCE MORE, IT SHOULD PRODUCE MORE OF ITS OWN

NYTIMES/REUTERS:

Oil markets are oversupplied but it would not be wise for any OPEC exporter to tighten the taps given the risk of exacerbating prices, Qatari Oil Minister Abdullah al-Attiyah said on Sunday.

Attiyah's remarks came after Libya's most senior oil official said on Thursday he was studying the possibility of reducing output in response to a U.S. threat to sue OPEC members, although he said the North African country had no concrete plans to do so for now.

"It is not wise today to cut supplies even though there is a surplus because we do not want to create a psychological problem," Attiyah told Reuters. "I'm not in favour of it at all. We want to try to help to ease the psychological heat."

But the Qatari minister criticised a move by U.S. politicians to sue the Organization of the Oil Exporting Countries if the oil club did not pump an amount of oil that Washington sees sufficient.

"The Congress should look to increase exploration inside the United States," Attiyah said. "It is strange to ask what I should produce. It's an issue of sovereignty."

TWO THOUGHTS:

1. THERE IS AN OVERSUPPLY - A GLUT. WHICH MEANS THE RECENT RUN-UP IN PRICES - (UP 45% SINCE MARCH, WITHOUT A COMMENSURATE DECLINE IN THE DOLLAR) - PROVES IT'S A BUBBLE.
2. THE USA SHOULDN'T ASK OTHER NATIONS TO DO WHAT IT CAN DO BY AND FOR ITSELF.

THE DEMOCRAT PLAN TO RAISE TAXES ON ENERGY AND TO CONTINUE TO PROHIBIT COAL PLANTS AND OFF-SHORE DRILLING - WILL DO NOTHING GOOD.

VOTE ACCORDINGLY.