(more quotes, background)
SHARM EL-SHEIKH, Egypt, May 17 (Reuters) - U.S. President George W. Bush said on Saturday he was pleased with a boost in Saudi oil output but it did not solve problems in the U.S..
Bush said he made clear to Saudi leaders that high oil prices hurt the economies of some of Saudi Arabia's biggest oil customers.
Asked about his meetings with Saudi officials in Riyadh on Friday and whether he was satisfied with the Saudi oil output boost, Bush said King Abdullah summoned his energy minister.
"I said very plainly that you've got to be concerned about the effect of high oil prices on some of the biggest customers in the world.
"As the (Saudi oil) minister said yesterday, Saudi Arabia has increased the number of barrels of oil by 300,000 a day and they're increasing refining capacity which is not enough.
"It's something but it doesn't solve our problem," Bush told reporters. "Our problem in America gets solved if we expand our refining capacity, promote nuclear energy and continue our strategy for the advancement of alternative energies."
"I was pleased that they increased production by 300,000 (barrels a day) but I'm also realistic to say to the American people that we've got to do more at home," he said.
Since Bush last visited Saudi Arabia in January, oil prices have jumped since $30 to a record near $128 a barrel on Friday. (Reporting by Matt Spetalnick, editing by Robert Woodward)
Keywords: BUSH SAUDI/OIL
SHARM EL-SHEIKH, Egypt, May 17 (Reuters) - U.S. President George W. Bush said on Saturday he was pleased with a boost in Saudi oil output but it was "not enough".
"It's something but it doesn't solve our problem," Bush told reporters. "Our problem in America gets solved if we expand our refining capacity, promote nuclear energy and continue our strategy for the advancement of alternative energies."
On the final stop of his Middle East tour, Bush said he made clear to Saudi leaders that high oil prices hurt the economies of some of Saudi Arabia's biggest oil customers. (Reporting by Matt Spetalnick, editing by Robert Woodward)
Keywords: BUSH SAUDI/OIL
(Adds comments on Saudi Arabia's output boost, background)
TEHRAN, May 17 (Reuters) - Iran dismissed on Saturday Saudi Arabia's decision to boost oil output as a "political move" and said any OPEC production hike would only lead to an increase in reserves, an Iranian news agency said.
Oil Minister Gholamhossein Nozari was speaking a day after OPEC kingpin Saudi Arabia, a key U.S. ally in the Middle East, announced a modest increase in output after an appeal from visiting President George W. Bush.
"No, because I think a hike in output will add to an increase in reserves," Nozari told reporters when asked whether the 13-member cartel would increase production as requested by the United States.
Asked about Saudi Arabia's announcement that Riyadh had agreed to boost output by 3.3 percent, or 300,000 barrels per day, to loosen up the market and make up for declines in other OPEC nations, he was quoted by Fars News Agency as saying:
"This action is more of a political move ... this action will only help to increase reserves."
Iran, seen as an oil price hawk, is the second-largest producer in the Organisation of Petroleum Exporting Countries (OPEC) after Saudi Arabia.
The Islamic state is at odds with Washington over Tehran's disputed nuclear plans and also over who is to blame for violence in Iraq.
The country has repeatedly said the market is well-supplied with crude and blamed the rising oil price on the weak U.S. dollar and other factors outside OPEC's control.
Oil shot to a record high near $128 a barrel on Friday as a bullish price forecast from investment bank Goldman Sachs drowned out the offer of more supply from Saudi Arabia.
Oil prices have risen six-fold since 2002 and doubled since last year as rising demand from China and other developing nations cinched spare production capacity, adding pressure on the U.S. economy already hard hit by a housing slump.
OPEC's smallest producer, Ecuador, said on Friday that members should consider raising output to stem the oil rally because high prices are hurting the poor.
OPEC had previously rebuffed calls for more supply during oil's recent climb.
The United States says more supply would help lower prices, while OPEC officials blame the high price on factors beyond their control, such as speculation and the weak dollar. (Reporting by Hashem Kalantari and Zahra Hosseinian; Writing by Fredrik Dahl; Editing by Sanjeev Miglani)
((fredrik.dahl@reuters.com; +98 21 8820 8770))
Keywords: IRAN OPEC/OIL
TEHRAN, May 17 (Reuters) - OPEC will not boost oil output as such a move would increase reserves, Iran's oil minister said on Saturday, despite pressure from the United States and other consumer nations.
"No, because I think a hike in output will add to an increase in reserves," Oil Minister Gholamhossein Nozari told reporters when asked whether the cartel would increase production as requested by the United States. (Reporting by Hashem Kalantari and Zahra Hosseinian; Writing by Fredrik Dahl; Editing by Anshuman Daga) ((fredrik.dahl@reuters.com; +98 21 8820 8770))
Keywords: IRAN OPEC/OIL
For news and data, double-click on the codes in brackets.
Access to some items may depend on subscription level.
> European Power and Gas [TOP/ELE]
...............................................................
TOP STORIES
> Oil hits record, Saudi hike fails to stem rally [nSP206543]
> U.S. Energy Dept to stop adding oil to reserve [nN16420032]
> Goldman sharply raises oil price forecast [nL16867930]
> Ecuador leader says OPEC should mull higher output[nN16108346]
> Ecuador urges OPEC to up output for poor [nN16420792]
> Japan begins talks to expand gasoline exports to US [nT336841]
> Complex climate treaty challenges experts [nL16907194]
BUSH IN SAUDI
> Saudis slightly increase oil output as Bush visits[nN16383084]
> Saudi oil min says meet any oil demand from custom[nDXB000257]
> Saudi ready to pump more oil, sees no need-US aide[nL16181676]
> U.S. says to help Saudi protect its oil [nL16875089]
TOTAL
> Total shuts Dutch refinery diesel unit til June [nL16656177]
> Total CEO sees Saudi refinery project over $10 bln[nL16689400]
> Total CEO says to use cash on new oil projects [nL16581711]
> Total CEO sees N.Sea field coming onstream soon [nL16431289]
MARKETS
> NYMEX crude ends above $126, extending record run [nN16574659]
> Tight diesel to keep at premium to gasoline - ESAI[nN16436218]
> ENERGY WEEK-Record oil drives other fuels to peaks[nL16102755]
> NWE products-Mixed, diesel edges up, fuel steady [nL16776973]
REFINERIES
> Shell restarts Martinez hydrocracker - source [nN16423237]
> Saudi Aramco, Conoco moving forward on refinery [nN16413133]
> BP Texas City alky, FCC expected back next week - [nN16405322]
> China reopens Sichuan refinery, replenishes fuel [nPEK321680]
ANALYSIS
> Reliance mega-refinery to redraw fuel trade routes [nSP178916]
CORPORATE NEWS
> British Energy gets bid approaches, shares jump [nL16387334]
> PetroChina names new president, other appointments[nHKG238054]
> Western majors escape new Kazakh oil export duty [nL16847980]
Latest ICE Market report [O/L] Latest NYMEX
Latest ICE Market report [O/L]
Latest NYMEX market report [O/N]
Latest European cash oil products report [PRO/E]
Latest European cash crude report [CRU/E]
................................................................
LIVE PRICES & DATA
ICE Brent <0#LCO:> ICE Gas oil <0#LGO:>
NYMEX Crude <0#CL:> NYMEX Heating oil <0#HO:>
NYMEX gasoline <0#RB:> Brent,Dubai paper <0#BRT-><0#DUB->
..............................................................
TOP NEWS SUMMARIES ON OTHER SUBJECTS
Reuters Front Page [TOP/NEWS] Global Economy [TOP/MACRO]|
Politics and General [TOP/G]
U.S. Companies [TOP/EQU] European Companies [TOP/EQE]
Asian Companies [TOP/EQA] Forex [TOP/FRX]
Sports [TOP/SPO]
..............................................................
HOW TO FIND INFORMATION YOU NEED
| <REUTERS> | <NEWS> | <PHONE/HELP> | <EQUITY> |
| <BONDS> | <MONEY> | <COMMODITY> | <ENERGY> |
..............................................................
Page editor: 646-223-6200; New York Desk
...............................................................
Keywords: MARKETS ENERGY TOPNEWS
Next: UPDATE 8-Oil hits record, Saudi hike fails to stem rally