Riyadh:  US President George W Bush pressed Saudi Arabia to raise oil output, but the world's biggest crude exporter said global supply is balanced with demand.

The OPEC kingpin revealed it had hiked production by 300,000 barrels per day this month, but both sides appeared to downplay the move.

National Security Adviser Stephen Hadley said that Riyadh told Washington the hike would not have a major impact on rocketing prices.

Bush arrived in Riyadh yesterday on the second stage of a Middle East tour and went straight into talks with King Abdullah as oil prices hit another record high. It was his second trip to the kingdom since January.

"Clearly, the price of gas is too high for Americans, and it's causing a hardship for many families of low income. But it also is not allowing our economy to grow as strong as it could," White House spokeswoman Dana Perino told reporters aboard Air Force One which brought Bush from Israel.

"We do count on the OPEC countries to keep adequate supplies out there. And so the president will talk again with the king about that," she said.

Oil prices rocketed near USD 128 per barrel yesterday. Saudi Oil Minister Ali al-Nuaimi said there was no need for a rise in output, relling reporters: "Supply and demand are in balance today... The fundamentals are sound."

However he did say that on May 10 "we increased our response to our customers by 300,000 barrels because they asked for it." Nuaimi said the additional demand came from mostly US clients.

Source : PTI