Saudi Arabia will also give USD 1 billion to an OPEC fund for developing countries and USD 500 million in soft loans for poor countries to finance energy and development projects, he said.

"We are very concerned for consumers in all countries," the leader of the world's top oil exporter said, as he formally launched the meeting seeking to find ways to stop spiraling prices seen as a threat to the world economy.

"We have increased production in the past few months from 9 million barrels a day to 9.7 million barrels," said the king.

"And we declare our readiness to meet any additional needs," he added. The latest Saudi output hike took the kingdom's daily production to the highest level for more than two and a half decades.

Western powers at the Jeddah meeting have called on the Organisation of Petroleum Exporting Countries (OPEC) and other major producers to increase output to ease market tensions.

OPEC has in turn insisted that supply is adequate and that "speculators" are playing a key role in the doubling of the price of a barrel of crude to almost USD 140 over the past year.

In his opening speech to conference delegates, King Abdullah appealed for the World Bank to help poor nations that are battling runaway energy costs.