Post by PapaEZRA on Apr 25, 2005 22:41:32 GMT -5
By DEB RIECHMANN, Associated Press Writer
CRAWFORD, Texas - President Bush prodded Saudi Arabia's Crown Prince Abdullah on Monday 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 that can be given to the market on available supply, he said, should "have a downward pressure on the price."
Read more atnews.yahoo.com/news?tmpl=story&u=/ap/20050426/ap_on_go_pr_wh/bush_saudi_arabia
CRAWFORD, Texas - President Bush prodded Saudi Arabia's Crown Prince Abdullah on Monday 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 that can be given to the market on available supply, he said, should "have a downward pressure on the price."
Read more atnews.yahoo.com/news?tmpl=story&u=/ap/20050426/ap_on_go_pr_wh/bush_saudi_arabia