Published: May 17, 2008 02:08 am            

Bush doesn’t get the answer on oil he wanted from Saudis

RIYADH, Saudi Arabia — Saudi Arabia didn’t exactly tell President Bush no. But it sure didn’t say yes, either.

The response seemed to be “maybe” or maybe “a little” when Bush came calling for help in reducing skyrocketing oil prices. Whatever the answer, it seemed unlikely to lower prices at the pump much — if any — for American consumers. It was a setback for the former Texas oilman who took office predicting he would jawbone oil-producing nations to assist the United States.

Bush got a red-carpet welcome to this desert kingdom, home to the world’s largest oil reserves, and promised to ask King Abdullah to increase production to reduce pressure on prices, which soared past $127 for the first time Friday. But Saudi officials said they already were meeting the needs of their customers worldwide and there was no need to pump more.

Their answer recalled Bush’s trip to Saudi Arabia in January when he urged an increase in production but was rebuffed.

Saudi oil minister Ali al-Naimi said the kingdom decided on May 10 to increase production by 300,000 barrels a day to help meet U.S. needs after Venezuela and Mexico cut back deliveries.

“Supply and demand are in balance today,” al-Naimi told a news conference, bristling at criticism from the U.S. Congress. “How much does Saudi Arabia need to do to satisfy people who are questioning our oil practices and policies?”

Early this week, Senate Democrats introduced a resolution to block $1.4 billion in arms sales to Saudi Arabia unless Riyadh agreed to increase its oil production by 1 million barrels per day.

Saudi Foreign Minister Saud al-Faisal said the discussion with Bush about oil was friendly. “He didn’t punch any tables or shout at anybody,” the minister said. “I think he was satisfied.”

National Security Adviser Stephen Hadley said consumers would not see dramatic price reductions. Oil experts agreed.

Bernard Picchi, an energy analyst at Wall Street Access, an independent research firm, called the 300,000 barrel Saudi production increase “a token amount.”

It would be different, he said, if Saudi Arabia boosted production by 1 million or 1.5 million barrels a day. The announced increase will have Saudi Arabia pumping 9.45 million barrels a day by June, Saudi officials said. That’s about 2 million barrels below its capacity. Analysts also discounted the impact of the U.S. Energy Department’s announcement that it would cancel shipments into the Strategic Petroleum Reserve for six months beginning July 1.

        

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