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Bush asks Opec to be lenient

Riyadh - US President George W Bush said on Tuesday he hopes that as the Organisation of Petroleum Exporting Countries sets production levels, the oil cartel will consider the negative effect high oil prices are having on the US economy.

Bush said he spoke with Saudi King Abdullah about oil prices, which recently surged past $100 a barrel.

"Oil prices are very high, which is tough on our economy," Bush said before he began a round-table with Saudi business men and women at the US Embassy here.

"I would hope that as Opec considers (its response to higher prices) that they understand when their biggest consumer's economy suffers, it means less purchases, less oil and gas sold."

Saudi Arabia holds the world's largest oil reserves and surging fuel costs are putting a major strain on the troubled economy in the US where gasoline has topped $3 a gallon (3.8 litres).

Opec supply

High energy costs for fuelling cars and heating homes are leaving people with less money to spend elsewhere, and prices for some other goods and services also have risen.

Opec oil accounts for about 40% of the world's needs, and Opec ministers often follow the lead of the Saudis when discussing whether to increase production to take the pressure off rising prices. The Saudis' views carry great weight because Saudi Arabia is responsible for almost a third of Opec's total output.

The issue of high oil prices also has come up in earlier stops on Bush's eight-day trip to the Middle East, largely in the context of his push for alternate fuels and sources of energy.

White House counsellor Ed Gillespie said Mid-east leaders have "talked about the nature of the market and the vast demand that's on the world market today for oil." He said that was "a legitimate and accurate point."

Bush spoke before meeting with mostly young Saudi business owners, many of them educated in the US. The group included two women.

Bush acknowledged one of Saudis' biggest gripes when he acknowledged the tight visa restrictions the US imposed after the September 11 terrorist attacks on Saudis trying to visit the US. The president said visas were "tightened to the point where we missed opportunities." Bush said he thinks the US benefits from having foreign students studying in America and carrying their views of the US home.

Later on Tuesday, Bush was visiting al-Murabba Palace, the National History Museum and Al Janadriyah Farm, the Saudi Arabian king's country retreat where he maintains 150 Arabian stallions. That trip repays the visit of the king - when he was crown prince - to Bush's ranch in Crawford, Texas.

- Sapa-AP

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