Saudi summons the oil world over record price

By Andrew Hammond and Simon Webb - Analysis

RIYADH/DUBAI (Reuters) - Leading exporter Saudi Arabia has summoned consumer nations and fellow producers to an urgently convened meeting to thrash out a solution to oil prices it says are unjustifiably high.

Producers and consumers have long blamed each other, but the Saudi cabinet, chaired by King Abdullah, issued instructions to bring them together after oil rose by an unprecedented $16 a barrel over a little more than 24 hours to more than $139.

Representatives of the two sides met in April in Rome, where they failed to even agree the price was too high, although it was then around $20 below current levels.

The oil exporters say supplies are adequate and are not the cause of high prices. They too do not want to see fuel costs hurting the economy.

They also say a massive flow of investment funds, which has helped to drive oil and other commodities higher, should be tamed.

"The kingdom is genuinely concerned and wants as many stakeholders as possible to get involved and make some serious proposals for regulating speculation," an industry source said.

Investment banks Goldman Sachs (GS.N) and Morgan Stanley (MS.N) would be invited to attend the meeting on June 22, OPEC Secretary General Abdullah al-Badri said on Tuesday.

Banks such as Goldman and Morgan are prominent among those saying oil market fundamentals are a key factor in rising prices, sending a bullish message to the oil market.