advertising
Link to jump to start of content The Seattle Times Company Jobs Autos Homes Rentals NWsource Classifieds seattletimes.com
The Seattle Times Nation & World
Traffic | Weather | Your account Movies | Restaurants | Today's events

Tuesday, April 26, 2005 - Page updated at 12:00 a.m.

Bush presses prince for more Saudi oil

The Associated Press

Enlarge this photoPOOL / GETTY IMAGES

President Bush escorts Saudi Crown Prince Abdullah to his private office on his Crawford, Texas, ranch, where the two met yesterday.

CRAWFORD, Texas — President Bush prodded Saudi Arabia's Crown Prince Abdullah yesterday to help curb skyrocketing oil prices, and the White House expressed hope that the kingdom's plans would ease U.S. gasoline prices that have shot above $2.20 a gallon.

"A high oil price will damage markets, and he knows that," Bush said of Abdullah, the de facto leader of the desert kingdom.

Asked whether pump prices would drop, Bush said that would depend on supply and demand.

"One thing is for certain: The price of crude is driving the price of gasoline," Bush said. "The price of crude is up because not only is our economy growing, but economies such as India and China's economies are growing."

Saudi Arabia has outlined a plan to increase production capacity to 12.5 million barrels a day by 2009 from the current 11-million limit. Saudi Arabia now pumps about 9.5 million barrels daily. If necessary, Saudi Arabia says it will eventually develop a capacity of 15 million barrels a day.

National-security adviser Stephen Hadley said the plan could be seen as positive news by financial markets.

"The problem in the oil market now is a perception that there is inadequate capacity," Hadley said. Reassurance about available supplies, he said, should "have a downward pressure on the price."

On another economic issue, the United States and Saudi Arabia are on the verge of a bilateral trade agreement that would allow the Gulf nation to join the World Trade Organization, "God willing by the end of the year," said Abdullah's foreign-affairs adviser, Adel Al-Jubeir.

Other pressing issues, including terrorism, prospects for peace between the Israelis and Palestinians, Syria's future role in Lebanon and democratic change in the Middle East filled the leaders' meeting and discussion over lunch. They agreed to set up a high-level committee, headed by Secretary of State Condoleezza Rice and the Saudi foreign minister, to deal with strategic issues.

Spreading democracy is a second-term goal that could affect Bush's legacy, but high gas prices are a drag on his current popularity.

advertising
A recent Associated Press-AOL poll found the public giving the president low marks for his handling of energy problems, with 62 percent saying they disapproved.

Earlier in April, another AP survey found public dissatisfaction growing more generally, with Bush's job-approval rating at 44 percent.

Al-Jubeir said Saudi Arabia is producing all the oil that its customers are requesting. He said the price is being driven up by a shortage of refining capacity.

"What we have done is explain to the U.S. what our production capabilities are," he told reporters about the meeting. "We also explained to the U.S. — and we have for months — what our plans are for adding to that capacity in the future years."

Copyright © 2005 The Seattle Times Company

Marketplace

advertising