Middle East News

Saudis increase oil output; rebuff Bush appeal (3rd Roundup)

May 16, 2008, 23:12 GMT

Riyadh - Saudi Arabia will not increase the production of oil despite pleas by US President George W Bush during a visit to the kingdom on Friday. Bush was in Saudi Arabia urging King Abdullah's government to step up production to ease the global energy crunch and record high oil and gasoline prices that have squeezed American consumers. But in a puzzling sequence of events, Saudi Oil Minister Ali al- Naimi and Foreign Minister Prince Saud al-Faisal said after the two leaders met that Saudi production was already increased by 300,000 barrels on May 10 to meet customer demands and there would be no additional hikes for the time being. It was the second time in five months the close US ally and largest OPEC oil producer has rejected personal appeals by Bush during visits to raise production. 'The Saudi government has reiterated their policy that Saudi Arabia is willing to put on the oil market whatever oil is necessary to meet the demand of Saudi Arabia's customers,' Bush's national security adviser, Stephen Hadley said. The Saudis told Bush that there have been no further demands by customers for more oil, Hadley told reporters after the meeting. The price of oil has soared and remained at record highs. It was at 127 dollars a barrel on Friday on the mercantile market in New York. The rebuff to Bush combined with the Saudi announcement they had already increased production appeared to be a 'face-saving' overture after the Saudi leaders had 'made a hash out of the visit,' said analyst Peter Morici, an economist at the University of Maryland. Morici called the Saudis 'selfish and greedy,' charged they were making hay out of Bush's 'weak political position at home' and questioned whether they had really boosted production. 'They are kicking him while he's down,' Morici said in a telephone interview in Washington. 'It's unseemly. I think the Democrats (in US Congress) should rally behind their president.' Bush is a Republican. Oil prices, Iran's nuclear programme, the political crisis in Beirut, Iraq and the Middle East peace process were also on the agenda of Bush second trip to Saudi Arabia to mark the 75th anniversary of formal relations between the two countries. The Bush administration has been frustrated by the reluctance of Saudi Arabia, which is largely Sunni, to offer more support or establish diplomatic ties with the Shiite dominated Iraqi government. Bush was also seeking to boost Saudi support for the Middle East peace process and Palestinian President Mahmoud Abbas. Abdullah's backing is viewed as vital to legitimize Abbas's negotiations with the Israelis. Bush arrived in Saudi Arabia after visiting Israeli to celebrate 60 years of the Jewish state. Bush is expected in the Red Sea resort of Sharm el-Sheikh on Saturday for a meeting with Egyptian President Hosny Mubarak and Abbas before returning to Washington.

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Saudis increase oil output; rebuff Bush appeal (3rd Roundup)

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