Bush urged to use WTO to break up OPEC oil cartel (Reuters)

Bush urged to use WTO to break up OPEC oil cartel
12 Dec 2005 20:52:36 GMT

Source: Reuters

WASHINGTON, Dec 12 (Reuters) - A U.S. senator on Monday urged President George W. Bush to get tough with OPEC after the cartel threatened to cut its crude oil production next year if oil prices fall.

At its meeting in Kuwait Monday, ministers with the Organization of Petroleum Exporting Countries said they would trim production to official limits and could cut further if prices slip.

Democratic Sen. Frank Lautenberg of New Jersey said such price-fixing export quotas are illegal under the World Trade Organization. He said Bush should work through the WTO to break up the oil cartel.

"OPEC is holding Americans hostage with illegal export quotas that drive up the price of oil," Lautenberg said. "Instead of holding hands with the Saudis and other OPEC nations, it's time for President Bush to hold them accountable."

Half of OPEC's members also belong to the WTO. Saudi Arabia, the world's biggest oil producer and a cartel founding member, joined the WTO on Sunday.

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