US President George W. Bush said Saudi Arabia's decision to raise oil output 300,000 barrels a day is "not enough" to ease United States energy prices and that more domestic oil exploration and refining capacity are needed.

"It's not enough, it's something but it doesn't solve our problem," Bush told reporters in Sharm el-Sheik, Egypt, last Saturday when asked about the Saudi decision, taken on May 10 and announced last Friday, to increase crude production.

"Our problem in America gets solved when we aggressively go for domestic exploration," Bush said after meeting Afghan President Hamid Karzai ahead of a World Economic Forum conference. "Our problem gets solved if we expand our refining capacity, promote nuclear energy and continue our strategy for the advancement of alternative energy as well as conservation."

Saudi Arabia, the world's largest oil exporter, said last Friday, while Bush was in Riyadh, that the country's daily output will rise to 9.45 million barrels a day in June. Saudi Oil Minister Ali al-Naimi told reporters the kingdom took the step in response to demands from customers, Bloomberg News said.

Oil prices have doubled in the past year on surging demand, supply disruptions in places such as Nigeria and commodity purchases by investors as a hedge against a weakening US dollar. The price surge threatens to accelerate inflation and curb economic growth.

Bush voiced frustration with congressional blockades of Republican-led efforts to increase domestic drilling.

"One of the interesting things about American politics is those who are screaming the loudest for increased production from Saudi Arabia are the very same people who are fighting the fiercest against domestic exploration, against development of nuclear power and against expanding refining capacity," Bush said.

"So I was pleased that they increased production by 300,000, but I am also realistic to say to the American people that we've got to do more at home and we need a Congress which will be responsive to those requests," Bush said.

The US Senate last Tuesday defeated a Republican plan to increase oil and natural-gas drilling in the Outer Continental Shelf and Alaska's Arctic National Wildlife Refuge.

The measure failed by a 42-56 vote. Republicans argued that more domestic drilling may lower oil and gasoline prices. The measure also promoted alterative fossil fuels such as diesel derived from coal and oil shale.

Also last week, the Senate passed legislation that would halt oil shipments to the Strategic Petroleum Reserve in an effort to ease record oil and gasoline prices. Bush is likely to sign the bill.

Crude oil futures traded in New York rose on Friday to a record about one hour after Bush landed in Saudi Arabia. They later settled at US$126.29, an increase of US$2.17, or 1.7 percent, though below the day's high after the promise to boost production. Saudi Arabia is the world's largest oil exporter and the most influential member of OPEC.

OPEC, which pumps more than 40 percent of the world's oil, has kept output targets unchanged during its past three meetings, on March 5, February 1 and December 5.