NEW YORK President Bill Clinton said on Thursday he told Saudi Crown Prince Abdullah that oil prices were "too high" and urged OPEC to increase production as they promised earlier this year.
Clinton said he spoke to Prince Abdullah about the price of oil when they met on Wednesday night.
Clinton was meeting several leaders from the Middle East on the sidelines of the UN Millennium Summit to discuss peace in the region.
"I told him that I was very concerned that the price of oil was too high, not just for America but for the world, that if it was to cause a recession in any part of the world that would hurt the oil-producing countries," Clinton told reporters during a picture-taking session with South Korean Prime Minister Kim Dae-Jung.
"There were other reasons why it was not in their interest, and he agreed with that, he's been very strong about that," Clinton said.
He said he told Prince Abdullah he hoped that when OPEC ministers gathered for their meeting on Sunday they would agree on an increase in production, as they promised earlier this year.
"Remember, they adopted a policy that said if the price got outside the range as I remember the range, it was $22-$28 a barrel and they would take appropriate action," Clinton said.
"So I hope that they will." British Prime Minister Tony Blair's spokesman Alastair Campbell said Britain shared Clinton's views.
"The concerns the Americans are expressing are clearly shared by us," he said.
Blair had planned to hold talks with Prince Abdullah on Wednesday, but the two men were unable to meet. "There are other fora where those concerns can be expressed," he said.
Under an informal mechanism agreed between OPEC producers in June, if the price of OPEC's basket of seven crudes stays above the $22-$28 band for 20 working days, crude production will be increased by 500,000 barrels a day to try to bring the price back into the range.
The price surged on Wednesday to $33.57 a barrel, the 18th consecutive working day the price was above the target range.
Clinton did not confirm a report that the Crown Prince promised him that OPEC would raise output by 700,000 barrels per day.
Clinton said the price of oil was of particular concern to the United States, because inventories are at a 24-year low and because many regions are dependent on heating oil.
"And we're attempting now to fill our reserve and to look at what all of our options are, particularly for meeting the home heating oil needs of the American people," he said.
"OPEC should seriously consider increasing production to a level that will bring oil prices down to a range of $20-$25 a barrel," he said in a statement. "Clearly, there is not enough oil in the market to bring stability to crude oil prices. The market is sending clear signals that we need more oil." (Reuter)