OPEC President Says Oil Could Hit 200$ - Cites Weak Dollar and Global Insecurity

Excerpt from Financial Times April 28, 2008 by Carola Hoyos in London:

"Opec’s president on Monday warned oil prices could hit $200 a barrel and there would be little the cartel could do to help.The comments made by Chakib Khelil, Algeria’s energy minister, came as oil prices hit a historic peak close to $120 a barrel, putting further pressure on global economies. His remarks suggest Algeria wants Opec to continue to resist calls by US and European leaders for the cartel to pump more oil to help ease prices. But Mr Khelil blamed record oil prices on the weak dollar and global political insecurity. " "He added: "The prices are high due to the recession in the United States and the economic crisis, which has touched several countries, a situation that has an effect on the value of the dollar. Each time the dollar falls 1 per cent, the price of the barrel rises by $4 and of course vice versa.”
Also See the BBC Article on the same news: Opec warns oil could reach $200
CallmeASeeker notes :The BBC article chooses to mention the dollar only in passing and focusses mostly on the oil supply side!! Whats the Fed Thinking about this :
From CNN- Fed Expected to Cut Fed Funds Rate this Week to 2%