Reply #21: WP: Bush, Saudi Fail to Reach Deal to Lower Gas Prices

[kskiska]

Abdullah Relays Country's Plan to Boost Capacity

CRAWFORD, Tex., April 25 -- President Bush and Saudi Crown Prince Abdullah emerged from their meeting here Monday with no agreement that would lower gasoline prices in the near term, although Saudi Arabia reiterated plans to increase oil production capacity in coming years in an effort to meeting fast-growing world demand.

Bush has pressed the Saudis in recent weeks to help lower gasoline prices soon by increasing crude oil production, but Abdullah and his delegation responded here by explaining their long-term strategy to invest $50 billion over five years in a plan that would eventually increase the kingdom's oil production capacity by close to 50 percent.

"Clearly, the news that came out of the meeting today ought to be good news for the markets, and we would hope that and other factors would result in some positive news in terms of the price fronts," national security adviser Stephen J. Hadley said. "But as you know, these markets are complicated business."

The meeting at Bush's ranch came amid increasing concern about spiraling gasoline prices, which are helping to push the president's approval ratings to new lows. It also came as Saudi officials are seeking to further repair their relationship with the United States, which was badly damaged after the Sept. 11, 2001, terrorist attacks. Fifteen of the 19 suspected terrorists were Saudi citizens.

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http://www.washingtonpost.com/wp-dyn/content/article/2005/04/25/AR2005042500376.html