Bush Urges OPEC to Raise Oil Production, Ease Energy Costs

U.S. President George Bush has called on the OPEC oil cartel to put more oil on the world market to help reduce energy costs. Mr. Bush told reporters traveling with him in Saudi Arabia that rising oil prices are hurting American consumers and could trigger a U.S. economic slowdown.

The president says he will discuss oil prices in a second round of talks with Saudi King Abdullah Tuesday. The two leaders are due to meet at the Saudi monarch’s lavish al-Janadriyah horse farm near Riyadh.

Saudi Oil Minister Ali Naimi said Tuesday the kingdom will increase oil production only when market conditions justify such a move.

Mr. Bush also reiterated a warning to Iran of serious consequences if Iranian forces attack U.S. military ships in the Persian Gulf.

Washington says Iranian speedboats threatened U.S. naval vessels in the Strait of Hormuz on January 6. Tehran denies that its boats acted in a threatening manner and says the naval encounter was routine.

Oil prices have surged in recent months, hitting $100 a barrel and driving up the cost of fueling cars and heating homes. Saudi Arabia produces almost a third of OPEC’s oil output and takes the lead in the cartel on output decisions.

As Mr. Bush arrived in Saudi Arabia Monday, his administration formally notified the U.S. Congress of plans to sell advanced weaponry to the kingdom as part of U.S.-led efforts to contain Iran.

President Bush leaves Saudi Arabia Wednesday for Egypt, the final stop on his Mideast tour before his return to Washington.

Some information for this report was provided by AFP, AP and Reuters.

by VOA News

Net News Publisher