August 27, 2006	Sunday	Sha'aban 2, 1427

RIYADH, Aug 26: Saudi King Abdullah was quoted on Saturday as saying high oil prices were unjustified because global markets were well supplied. The king also told Asharq al-Awsat newspaper in an interview that Saudi Arabia, the world's top oil exporter, wanted moderate oil prices, despite the benefits it would reap from higher prices.

The kingdom’s oil policy is based on moderate prices and despite the benefits higher oil prices bring to us, we call for moderation in oil prices, the king told the Saudi-owned newspaper.

Oil production is plentiful, so I am puzzled by the fluctuations in the market and the unjustified high oil prices, he added.

Oil rose on Friday as a tropical weather system brewing in the Caribbean threatened to sweep through the Gulf of Mexico next week and menace oil rigs yet to fully recover from last year's hurricanes.

Support also came from Iran's nuclear row with the West that could prompt UN sanctions against the world's fourth-largest oil exporter, although Russia ruled out such punitive action for now.

London Brent rose 2 cents to $72.70.---Reuters