U.S. missteps in Mideast weaken influence with OPEC

By Chris Baltimore - Analysis

WASHINGTON (Reuters) - U.S. missteps in the Middle East have estranged Washington from some long-time allies in the region and made OPEC suppliers less inclined to rescue the top consumer from record oil prices that are battering an already-fragile American economy.

Tempers flared this week at the White House after OPEC rejected U.S. calls to boost production, helping to send oil to yet another record above $100 a barrel. OPEC officials blamed high oil prices -- which topped $106 on Friday -- on the mismanagement of the U.S. economy.

The comments highlighted the strained relationship between the United States and long-time Gulf allies like Saudi Arabia, which has been tested by the U.S. military occupation of Iraq, confrontations over Iran's nuclear program and the grinding pace of U.S. efforts to forward Middle East peace talks.

"The White House's fundamental problem is they don't have credibility with the issues that are important to OPEC, so they're not inclined to give us a break on price," said David Goldwyn, an energy consultant.

"There's no motivation right now for them to help us out with more production," Goldwyn said.

The White House said Bush was "disappointed" by OPEC's decision not to increase production when it met in Vienna on Wednesday, after the U.S. president said the group was making a mistake to let high energy costs weaken the important oil consuming economy further.

"If OPEC has decided they are not going to increase output, there's not a lot that the President can do," White House spokeswoman Dana Perino said on Thursday. "We don't control their decisions."

Some U.S. drivers already pinched by the mortgage crisis could face gasoline prices above $4 a gallon this summer, surpassing the record average of $3.22 a gallon set last May, according to analysts.