JEDDAH, Saudi Arabia — Facing strong U.S. pressure and global dismay over oil prices, Saudi Arabia said Sunday it will produce more crude this year if the market needs it. But the vague pledge fell far short of U.S. hopes for a specific increase and might do little to lower prices immediately.
For now, the current “oil shock” leaves Western countries with little choice but to move toward nuclear power and change their energy-consumption habits, warned British Prime Minister Gordon Brown at a rare meeting of oil-producing and -consuming nations.
Saudi Arabia, the world’s top crude exporter, called the gathering Sunday to send a message that it too is concerned by high oil prices inflicting economic pain worldwide.
Instead, the meeting highlighted the sharp disagreement between producers such as Saudi Arabia and consuming countries such as Britain and the United States over the core factors driving steep price increases. Oil closed near $135 a barrel Friday — almost double the price a year ago.
The cost of gasoline also has become a sore point in the U.S. presidential race, with President Bush and presumed Republican nominee John McCain calling on Congress to lift its long-standing ban on offshore oil and gas drilling. Barack Obama, the presumptive Democratic nominee, has said such moves will do nothing to ease American consumers’ pain in the short term.
The U.S. and other nations argue that oil production has not kept up with increasing demand, especially from China, India and the Middle East. But Saudi Arabia and other OPEC countries say there is no shortage of oil and instead blame financial speculation and the falling U.S. dollar.
