With pressures on oil prices from Hurricane Isaac and tensions with Iran, the G7 leaders are pressing OPEC to increase oil production. Saudi Arabia promised to step in to help oil-consuming economies in the case of just such an emergency and the G7 nations have stopped short of tapping emergency oil supplies to aid price relief.
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But most other OPEC members have been unwilling to increase production over the past several months. Gas prices usually begin to subside toward the end of the summer vacation months but this year, they are at their highest levels yet.
And although traders are speculating that the G7 nations may indeed open their emergency supplies, no announcements to that effect have been made.
Just such speculation may be enough to contain the price rise
, however. Oil production has been increasing in Saudi Arabia and also in the US and Canada. The sanctions on Iran are certainly no surprise and may already be factored into the market.
As well, the effects of Hurricane Isaac may be less than anticipated depending on when and where the hurricane lands.