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Monday, April 24

No Virginia, There Isn't a Gasoline Shortage

Senator Arlen Specter on oil companies:

"They get together, reduce the supply of oil, and that drives up prices," he said. "In the short run, it's hard to deal with it for tomorrow. But I think windfall profits, eliminating the antitrust exemption, considering the excessive concentration of power are all items we ought to be addressing."

Specter is backing legislation that would strengthen antitrust laws on oil company mergers after his committee held a hearing last month examining the growing consolidation of the oil industry. The nation's largest oil companies, including Exxon Mobil Corp., have denied their industry size has affected prices.

Saudi Arabian Oil Minister Ali al-Nuaimi says Oil price level not a supply problem:

"The market determines the price," Nuaimi said on his arrival in Doha for an informal meeting of the 11-member OPEC on the sidelines of an international energy forum.

"You know and I know that the reason for the price being where it is is not shortages of supply."

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