German Minister Blames US and Hedge for High Oil Prices

Published: Wednesday, August 31, 2005

Germany blames the US and Hedge Funds for increasing oil prices.

German Economy Minister Wolfgang Clement said during a speech to German radio that the US is partially responsible for the high oil prices, as it did not increase the production capacity of its oil refineries.

The oil companies are not responsible for the increase but the economic policy of the US government the German Minister defended, noting, the US administration should change its attitudes and increase its oil refining capacity.

Clement said hurricane Katrina that hit oil refineries in the US, made the situation even worse, adding, the US will have to buy more oil than Europe as its institutions are damaged and this will increase oil prices even more.