UN Secretary General Ban Ki-moon on Saturday started a mission to Saudi Arabia focused on soaring world oil prices and their impact on global food security. The 24-visit comes amid reports that the oil kingpin is planning to increase its crude production next month by about a half a million barrels per day (bpd) to calm jitters on international markets.
Ban, on his second visit to Saudi Arabia since March 2007, was due to hold talks with King Abdullah in the Red Sea resort of Jeddah and have dinner with Saudi Foreign Minister Saud al-Faisal, UN spokesman Farhan Haq said.
He was expected to wrap up his visit on Sunday. Speaking to reporters in London ahead of the trip, Ban said the jump in oil prices was "a serious concern" to all and that he would discuss the issue with Abdullah, including the adverse impact on food prices.
"We need to address and then cope with rising food prices as well as rising oil prices, because, unless we properly manage these issues, this may create a cascade of all other challenges and prices, affecting not only social and economic (condition) but also creating political instability," Ban said.
Ban also said he looked forward to a "good discussion" on Saudi Arabia''s plan to host a meeting of leading oil producers and consumers in Jeddah on June 22.
Saudi Arabia, by far Opec''s biggest oil producer and exporter, decided to convene the talks after crude struck a record high of nearly 140 dollars last week, stoking fears of surging global inflation and weaker economic growth. Reports on Friday suggested that the oil giant - which currently produces 9.45 bpd - could decide to raise its crude production to 10 million bpd when it hosts the meeting next week.
The Middle East Economic Survey specialist newsletter said this would put production up "at near record levels of around 10 million bpd." The New York Times linked the expected plan to what it said were fears by Saudi Arabia that soaring oil prices might trigger a worldwide economic slump and lead to lower oil demand.
Last month, Saudi Arabia announced an increase of 300,000 bpd after a visit by US President George W. Bush, but the kingdom has still been under pressure to step up its output. Ban''s visit to Saudi Arabia also comes as Group of Eight finance ministers warned in Japan that high oil and food prices posed "a serious challenge to stable growth worldwide" and may worsen poverty and stoke global inflation.
The UN chief will also thank Abdullah for his contributions to UN aid projects, including a 500 million-dollar donation to the UN World Food Programme appeal to battle the global food price crisis, Haq said. He will also express gratitude to the Saudi monarch for his efforts to help settle the Israeli-Palestinian conflict and the Lebanon crisis, as well as an initiative to foster dialogue among Muslims, Christians and Jews.
In March, Abdullah proposed inter-faith talks among Christians, Jews and Muslims in a first for the ultra-conservative kingdom, which is home to two of the three holiest shrines in Islam.