Business News
Saudi Arabia pledges increase in oil production (Extra)
By DPA
May 16, 2008, 19:42 GMT

Riyadh - The royal house of Saudi Arabia will boost oil production by 3,000 barrels a day, Saudi officials said Friday, handing a diplomatic boost to US President George W Bush during his official visit there.

Saudi Oil Minister Ali al-Nuaimi and Foreign Minister Prince Saud al-Faisal made the announcement after Bush met with King Abdullah at a royal residence outside the capital Riyadh.

The price for oil from OPEC states is currently pegged at 118 dollars a barrel.

Bush travelled to Saudi Arabia with the hope of convincing OPEC's largest supplier to boost production in order to stop the steady price climb which is wreaking havoc with economies worldwide.

Minister al-Nuaimi said that Saudi Arabia was reacting with this limited increase in production to the growing demand on the world market.