| |
| |
![]() |
| |
|
| |
|
| |
|
RIYADH : US President George W. Bush pressed Saudi Arabia to raise oil output on Friday, but the world's biggest crude exporter said supply is balanced with demand and market fundamentals are sound.
Bush arrived in Riyadh on the second stage of a Middle East tour and went straight into talks with King Abdullah as oil prices hit another record high.
"Clearly, the price of gas is too high for Americans, and it's causing a hardship for many families of low income. But it also is not allowing our economy to grow as strong as it could," White House spokeswoman Dana Perino told reporters aboard Air Force One which brought Bush from Israel to Riyadh.
"We do count on the OPEC countries to keep adequate supplies out there. And so the president will talk again with the king about that," she said before King Abdullah led a red-carpet welcome for Bush at Riyadh airport.
Oil prices surged above 127 dollars per barrel on Friday.
But in a clear rebuke of Bush's quest for a rise in production, Saudi Oil Minister Ali al-Nuaimi told reporters global oil supply is balanced with demand.
"Supply and demand are in balance today... The fundamentals are sound," he said. However he did say that on May 10 "we increased our response to our customers by 300,000 barrels because they asked for it."
Nuaimi said additional demand came from about 50 customers, mostly US clients, "and we responded to it."
"Our production for June will be 9.45 million barrels per day," he added.
The minister's remarks were in line with Riyadh's position that soaring prices are because of speculation rather than supply shortages.
Saudi Arabia would respond "favourably" if there were a shortage in supplies, Nuaimi said.
Ahead of Bush's visit analysts had said the main Saudi concern was likely to be Washington's failure to do more to advance the Middle East peace process, amid growing fears that the influence of Shiite Iran is soaring on the back of Arab frustration.
In Israel Bush's visit was dominated by expressions of support for the Jewish state on the 60th anniversary of its creation, with talks on the peace process relegated to the background.
In an audio message posted on the Internet, Saudi-born Al-Qaeda leader Osama bin Laden slammed Bush and other Western leaders for attending Israel's celebrations and vowed that Muslims would not give up "one inch of Palestine."
Riyadh appears more concerned about Iran's increasing influence in the Arab world -- most recently demonstrated in the victory of its Hezbollah allies in Lebanon in clashes with supporters of the US-backed government -- in the face of perceived Western bias towards Israel.
"The kingdom believes that if Washington really wants to curb Iran's clout and role in the region it must work to resolve the Palestinian issue which Iran is exploiting to spread its influence," said Saudi political analyst Khalid al-Dakhil.
Saudi Foreign Minister Prince Saud al-Faisal earlier told reporters that the Middle East peace process will be "discussed in depth" during Bush's second visit to Riyadh since January.
He said the Saudis will also raise "Israel's ongoing policy of imposing collective punishment on the Palestinian people and its continuing blockade of the Gaza Strip" run by the militant Hamas movement.
But Dakhil said Bush was likely to find scant Saudi support for toughening policy towards Iran.
According to official Saudi media, the Palestinian problem, the crisis in Lebanon and the situation in war-torn Iraq featured in a first round of talks between Abdullah and Bush, whose visit to Saudi Arabia marks 75 years of official relations with the key US ally.
The White House meanwhile announced major new cooperation agreements with Saudi Arabia on civil nuclear power and protecting the kingdom's oil infrastructure which has come under attack by Islamist militants.
"The United States and Saudi Arabia have agreed to cooperate in safeguarding the kingdom's energy resources by protecting key infrastructure, enhancing Saudi border security, and meeting Saudi Arabia's expanding energy needs in an environmentally responsible manner," a White House statement said.
It said Washington and Riyadh would also sign an agreement on nuclear cooperation clearing the way for Saudi Arabia to receive enriched uranium for its reactors, without the need to master the fuel nuclear cycle itself as Iran has done.
Official Saudi media later said the two countries signed "a memorandum of understanding on cooperation in nuclear energy."
Bush is due in Egypt on Saturday on the third and last leg of his Middle East tour.
- AFP /ls
|
