AMMAN (Reuters) - The probability of a U.S. economic recession is growing and high oil prices pose a significant problem for the world's largest energy consumer, Energy Secretary Sam Bodman said on Thursday.
By Suleiman al-Khalidi
AMMAN (Reuters) - The probability of a U.S. economic recession is growing and high oil prices pose a significant problem for the world's largest energy consumer, Energy Secretary Sam Bodman said on Thursday.
Bodman said global oil supplies were not as high as the U.S. would like but he stopped short of echoing President George W. Bush's call for OPEC to boost supply earlier this week.
"There are certainly signs that we are facing economic challenges and I think that the probability of a recession is now greater than it has been in the past," Bodman told reporters in Jordan on the first leg of a trip to the Middle East.
!ADVERTISEMENT!"In my view, there is some evidence that suggests that supplies are less than we would like to see," Bodman said.
On a separate trip to the Middle East this week, Bush urged the Organization of the Petroleum Exporting Countries to increase output at its February 1 meeting to help tame soaring oil prices and ease the threat of high energy costs on the economy.
Bodman said OPEC's supply levels were a matter for the producer group to decide, but that the potential damage to the economy of high prices made a case for an output boost.
"There is a case for higher oil prices being encouraged by the fundamental supply and demand situation and these challenges certainly pose a significant problem for the United States, and have even greater consequences for developing countries like Jordan, seeing the burden of high oil prices. That is the case for increased supply."
Bodman said he will encourage energy ministers that he meets in his visit to the Middle East to keep markets well supplied.
(Writing by Simon Webb)
