VZCZCXRO6536
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #4432 2680423
ZNR UUUUU ZZH
P 250423Z SEP 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 7858
RUEKJCS/SECDEF WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA PRIORITY
RHHMUNA/HQ USPACOM HONOLULU HI PRIORITY
RHHMHBA/COMPACFLT PEARL HARBOR HI//N541// PRIORITY
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA// PRIORITY
RUHBANB/OKINAWA FLD OFC US FORCES JAPAN CP BUTLER JA PRIORITY
RHMFIUU/USFJ
INFO RUEHFK/AMCONSUL FUKUOKA 3316
RUEHNH/AMCONSUL NAHA 5729
RUEHNAG/AMCONSUL NAGOYA 2266
RUEHKSO/AMCONSUL SAPPORO 4043
RUEHOK/AMCONSUL OSAKA KOBE 6970
RUEHBJ/AMEMBASSY BEIJING 9116
RUEHMO/AMEMBASSY MOSCOW 1895
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RUCNDT/USMISSION USUN NEW YORK 6063
RHEHAAA/NSC WASHDC
UNCLAS TOKYO 004432
SIPDIS
SIPDIS
STATE FOR I/RF, PA/PR/FPC/W, IIP/G/EA, EAP/PD, R/MR,
EAP/J, EAP/P, PM;
USTR FOR PUBLIC AFFAIRS OFFICE;
TREASURY FOR OASIA/IMI;
SECDEF FOR OASD/PA;
CP BUTLER OKINAWA FOR AREA FIELD OFFICE;
PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR
E.O. 12958: N/A
TAGS: OIIP KMDR KPAO JA
SUBJECT: TOKYO MEDIA REACTION - OIL PRICES
LEAD STORIES: All Tuesday morning papers led with the
assignment on Monday of key party posts in the ruling
Liberal Democratic Party following the conclusion of
the election on Sunday of former Chief Cabinet
Secretary Fukuda as party president.
SIPDIS
"Speculative Funds Flood Oil Market" The
top-circulation, moderate Yomiuri editorialized (9/25):
"It must be a side effect of the move by countries
around the world to ease monetary supplies. Crude oil
in New York hit a record high of $84 a barrel.
Ironically, the price surge accelerated immediately
after OPEC decided on a 500,000-barrel-a-day production
increase.... Many experts attribute the rise in oil
prices to an influx of speculative money, including
investment funds, rather than an increase in demand....
The most effective way to fundamentally put a halt to
rising oil prices would be to tighten monetary policy
worldwide and get investment funds out of the
commodities market. This kind of radical measure,
however, cannot be taken until the unrest in the market
set off by the subprime loan problem has settled
down.... We hope OPEC will consider an additional
production increase. Although the global economy has
continued to expand even in the face of high oil
prices, there are growing concerns about inflation."
SCHIEFFER