OIL PRICES SENDING RED ALARM

Oil Prices Put U.S. Economy in 'Danger Zone' — Bodman

WASHINGTON -- The U.S. economy is in a "danger zone" because of near record-high crude oil prices and the world's producers must boost supply to prevent shortages, U.S. Energy Secretary Sam Bodman said Thursday.

Sustained U.S. crude oil prices near the $80 level could harm the U.S. economy, and both OPEC and non-OPEC producers should "look at what the facts are," Bodman told reporters.

"We're in a ... danger zone right now, so that's why I hope that both OPEC and non-OPEC nations will look carefully at the facts," Bodman told reporters.

U.S. crude oil futures Wednesday hit a record intraday high of $78.77 a barrel, surpassing the previous peak of $78.40 set in July 2006.

"I am concerned that where we are operating, in the ranges that we're talking about now where you are approaching $80," Bodman said.

© Reuters 2007. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters.