Washington: President George W Bush said that when he meets Saudi Arabia's King Abdullah later this week, he will bring up the effect that high oil prices are having on the US and global economies.

"Of course I will bring it up to him," Bush said in a CBS News radio interview yesterday. However, he added that the capacity of the Saudis to raise production -- and thus help lower prices -- is limited.

"When you analyse the capacity for countries to put oil on the market it's just not like it used to be," Bush said. "The demand for oil is so high relative to supply these days that there's just not a lot of excess capacity."

When Bush last met with the king in January, they also talked about high oil prices. At the time, Bush was hopeful that OPEC would authorise an increase in oil production. The kingdom holds the world's largest oil supplies and is a major voice in decisions by OPEC.

Asked what he planned to tell the Saudis this time that he did not tell them last time, Bush observed that "the price is even higher."

Oil prices briefly spiked to a new record above $126 a barrel yesterday but ended the day lower as investors cashed in profits and an earthquake in China raised the possibility of a drop in demand.

White House spokeswoman Dana Perino also said Bush would raise the topic. "Will he ask the Saudis to consider the drain on the world economy because of high gas prices? Yes, of course. He raises it every time that he can," she said.

In the interview, Bush also said that most oil imported into the United States "comes from Canada and Mexico," not from Saudi Arabia.
Source : PTI