Saudi initiative for oil consumer talks 'interesting': Bush

(BRDO PRI KRANJU) - US President George W. Bush said Tuesday that a Saudi proposal for a meeting between major oil producers and oil consuming nations to discuss soaring prices was "interesting."

It is "an interesting idea by his majesty the King of Saudi Arabia," Bush told reporters at the end of an EU-US summit in Brdo Pri Kranju, near the Slovenian capital Ljubljana.

Oil kingpin Saudi Arabia called on Monday for the talks and reiterated its readiness to meet any increase in demand.

At a meeting chaired by King Abdullah, the Saudi cabinet restated its view that the leap in prices that saw New York's benchmark contract hit a record 138.54 dollars on Friday was not because of a shortage of supplies.

But it added that it had asked Oil Minister Ali al-Nuaimi to "convene a meeting soon of representatives of producer and consumer nations and firms operating in the production, export and trading of oil to discuss the jump in prices, its causes and how to deal with it objectively".

Kuwait said on Tuesday it supports the call by Saudi Arabia but reiterated its position that high prices were not driven by market fundamentals.

In France on Tuesday Alexei Miller, head of Russian energy giant Gazprom, warned that the price of oil is likely to hit 250 dollars a barrel, without indicating when that might happen.

French oil group Total on Monday renewed a commitment to help ease the burden of rising fuel costs on poor households and said it would consider increasing its assistance.