(Adds Sarkozy comments, edits) By Tabassum Zakaria and Matt Spetalnick RIYADH, Jan 15 (Reuters) - U.S. President George W. Bush complained in Saudi Arabia on Tuesday that soaring oil prices were threatening the U.S. economy, raising pressure on the world's top oil exporter to help ease prices. Bush said he would raise his concerns face-to-face with his Saudi host, King Abdullah, when the leaders decamp to the monarch's desert getaway, injecting a message that could put a chill on the night's festivities. "I ... will again talk to his majesty tonight about the fact that oil prices are very high, which is tough on our economy," Bush told a roundtable meeting with Saudi entrepreneurs. Bush's overnight stay at King Abdullah's Al Janadriyah ranch near Riyadh on Tuesday had been seen as a chance to set aside talk of Middle East peace, Iranian challenges and controversial arms deals that dominated the first day of his visit. Bush has made clear he wants to deal with a subject that has emerged increasingly as an irritant in otherwise close relations between Washington and the Islamic kingdom, the most influential member of the OPEC group of oil exporters. "I would hope, as OPEC considers different production levels, that they understand that if their -- one of their biggest consumers' economy suffers, it will mean less purchases, less oil and gas sold," he said. OPEC, source of more than a third of the world's oil, has repeatedly said it is pumping enough crude to meet demand and blames speculation, a weak dollar and geopolitical tensions, such as fears of war with Iran, for record high oil prices. French President Nicolas Sarkozy, who is also touring the Gulf, said in Riyadh on Monday that oil should be closer to $70 per barrel than the current level of around $100. He called on Saudi Arabia to use its influence to moderate prices. When Bush walked arm-in-arm with King Abdullah at his Texas ranch nearly three years ago, oil cost $54 a barrel, a level the Saudi government acknowledged then was "clearly too high." Many Americans are griping about their tax dollars helping to underwrite the defence of wealthy Gulf allies. Many Gulf Arabs, whose currencies are pegged to the dollar, blame its weakness for spiralling inflation. Bush, whose country is the world's largest energy consumer, may well want to quiz the Saudis on how they can help tame oil prices that are an additional burden on a U.S. economy some economists say is tilting toward recession. HOW THE ROYALS LIVE During his visit to the retreat, Bush will see how the royals live in one of the world's richest oil producers. He will trade in his business suit for more casual attire and stay the night at the sprawling tent-like structure with walls made of silk. Even the Arabian stallions the king raises at his Janadriyah horse farm near Riyadh lead lives of luxury. They are kept in climate-controlled stables and are treated to aqua-therapy. The special hospitality is for a president who hosted King Abdullah as crown prince in Crawford, Texas, in 2002 and 2005. Bush, who is spending the rest of the day sightseeing and visiting U.S. embassy staff, has already given his royal host good reason to be pleased. Trying to counter Iran's growing military clout in the region, Bush made clear on Monday his commitment to go ahead with a major arms sale to Saudi Arabia. Just hours after his arrival in Riyadh, the U.S. administration said it notified Congress of its intention to offer the Saudis a package of advanced weaponry as part of a multibillion-dollar deal with Gulf Arab allies. The deal, covering 900 precision-guided bomb kits worth about $120 million, has raised concerns in Israel and its U.S. supporters about the military balance of power in the region. The sale is part of Bush's effort to persuade Saudi Arabia to help contain Iran, a strident U.S. foe. Acknowledging progress in neighbouring Iraq, Bush sent Secretary of State Condoleezza Rice to Baghdad on a mission to try to build on what his administration sees as progress on political reconciliation, the White House said. Bush wants Saudi Arabia to cajole other Arab states into bolstering the Israeli-Palestinian peace process that he hopes, in the face of deep scepticism, will yield a final deal before he leaves office in January 2009. Mindful of Saudi Arabia's strategic importance, Bush has avoided direct criticism of its human rights record during his trip. His last stop will be Egypt on Wednesday before heading home to Washington. (Additional reporting by Andrew Hammond; Editing by Dominic Evans)
Police patrol the streets in the West Bank city of Ramallah January 8, 2008. Palestinian police are slowly starting to exert control over some West Bank towns, long the domain of ...
