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Amid doubts, oil powers seek tonic to record prices Simon Webb and Summer Said The world's top energy policy makers meet in this Red Sea city on Sunday for emergency talks on halting oil's unrelenting rally, but hope for an immediate solution to record prices appeared dim. Saudi Arabia will try to coax its few OPEC peers who have spare production capacity to join the kingdom in pumping more barrels, although some in the cartel have been openly skeptical that raising output will rein in prices they believe are driven more by speculation than market fundamentals. Riyadh summoned both producers and consumers, plus chief executives from big oil firms, to the meeting after an unprecedented surge on June 6 of nearly $11 sharpened fears that oil prices were jeopardizing the world's economic health.
(Article continues below) Oil has doubled in a year to almost $140 a barrel, driving inflation rates higher around the globe, sparking street protests from Asia to Western Europe, and forcing the world's major central banks to concede that they may have to start raising interest rates to curb rising consumer prices. "I think it's going to be virtually impossible to find a set of solutions at a meeting like this that will ease high prices in the short-term," Raad Alkadiri, senior director for country strategies at U.S.-based consultants PFC Energy. "This is about market sentiment, and this meeting is probably not enough to change the market sentiment, which is clearly bullish. There clearly is no silver bullet."
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