OPEC shows mercy on U.S. housing industry

It remains to be seen whether the Fed will come riding to the rescue and help housing markets regain their footing by slashing the federal funds rate Sept. 18. But OPEC seems to have taken notice of  the troubles in mortgage lending, saying it will boost oil production by 500,000 barrels a day.

"We have seen the financial markets and the subprime mortgage (crisis) putting some clouds on the horizon," said OPEC Secretary General Abdalla Salem El-Badri (pictured).

"Our message to the consumer is that we care," El-Badri said (see AP story).

We'll have to take El-Badri's word on that last point. But if increased production puts a dent in crude oil prices -- which have soared to more than $76 a barrel, or more than double what they were a little more than two years ago -- that could ease the Fed's concerns about inflation and help justify a reduction in the federal funds rate.

All rights reserved. This article may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this article without permission is a violation of federal copyright law.