OSAC EARLY BIRD11 JUNE 2011

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From CNNSyrian Protesters Hit the Streets in Restive Daraa

From Arab NewsSIX WOMEN DETAINED IN RIYADH FOR DRIVING

LIBYA REBELS WIN AID, WEST SEES GADHAFI

From Fox NewsYemeni Warplanes Strike Militants in Seized Town

Iran Busted for Transferring Weapons to Terrorists in the Mideast

Dozens Killed During Syrian Protests

From New York TimesSAUDI ARABIA DEFIES OPEC AND RAISES OIL OUTPUT

From ReutersKarzai Urges Pakistan to Help End Taliban Insurgency

From Al JazeeraIraq 'to Request' US Troops to Stay

Photo Provided By Bruce Kendall

Syrian Protesters Hit the Streets in Restive Daraa

Demonstrators in volatile Syria took to the streets on Friday, as thousands marched in the restive city of Daraa and reports surfaced of two people killed by security forces during

protests in a nearby village, an activist told CNN.

Anti-government marchers have staged nationwide protests on Fridays after Muslim prayers for weeks and have given each one of those days a theme.

Friday's expression of discontent is dubbed "the Friday of the kinship," denoting that all Syrians are part of one family. A Facebook page promoting the activism is reporting demonstrations in Damascus, Qamishli, Tabqa, Deir Ezzor, Abu Kamal, Al-Mayadin, Basira, Qurie, Ras El-Ein and other cities.

This comes as Syrian state television announced Friday that the Syrian military had launched an operation to retake the rebellious border town of Jisr Al-Shugur, located near Turkey.

UNESCO Director-General Irina Bokova on Friday weighed in on violence and the clampdown on citizens' access to "communication and information services."

"Reports coming from Syria are alarming," Irina Bokova said. "The rights of citizens must be respected, as must the rights and security of journalists. This includes the right to freedom of expression, the need to access information and the ability to communicate. The decision to shut down Internet access and cell phone networks, to block broadcasters and prevent journalists from doing their job is not acceptable."

Mentioning a promised amnesty and call for national dialogue by the Syrian authorities, Bokova urged "authorities to immediately restore Internet and cell phone services for citizens, to lift restrictions on the media and to prevent acts of aggression against journalists, so that they can report freely on events as is their duty."

A spokesman with the Local Coordination Committees in Syria said there were two demonstrations in Daraa after noon prayers, about 1,000 gathered in Al Kousour neighborhood and 3,000 in an outpouring in Tarik Al Sad. Daraa is where anti-

government protests began nearly three months ago.Crowds were chanting for the fall of the regime and in support of the people of Jisr Al Shughur and Hama, where there have been military assaults on protesters. Security forces fired rounds into the air to disperse the protesters, but casualties were reported.

The activist also received reports of two dead in the village of Basra Al Harir, more than 20 miles northeast of Daraa when the security forces randomly opened fire at protesters.Syrian state TV reported an assault on security forces in Qaboun resulting in injuries. It said gatherings in the cities of Ras El-Ein and Amouda are dispersing.

As for Jisr Al-Shugur, Syrian refugees and opposition activists who fled the town fearing a government attack said they heard tanks firing their cannons as they advanced through villages while approaching the town.

The military advance is spreading panic throughout the civilian population. Residents say they have evacuated women and children from Jisr Al-Shugur in recent days. More than 2,700 Syrian refugees have fled to Turkey and humanitarian workers fear many more are on the way.

The Syrian government announced it would punish Jisr Al-Shugur after it claimed "armed groups" massacred at least 120 security forces there several days ago.

Refugees have disputed that claim. They say soldiers rebelled and started fighting among themselves after they were ordered to open fire on unarmed protesters.

Six Women Detained in Riyadh for Driving

RIYADH: Authorities detained six women on Thursday for driving cars in the capital in defiance of laws allowing only male motorists on the kingdom’s roads.

Rasha Al-Duwaisi, one of those detained on Thursday, put the ages of

the group at between 21 and 30 and said they had met in a district of Riyadh late in the afternoon to teach each other how to drive using three cars.

They were quickly taken to a police station and instructed to summon their male guardians (mahram) to collect them from custody.

“It’s not the first time we have done this,” Duwaisi told Reuters by telephone from the station.

“It’s my right to drive and my right to know how to drive. I suffer because I can’t drive because I have to rely on a driver that I share with four others.”

Many families in Saudi Arabia have at least one driver with an average salary of around 2,000 Saudi riyals ($533) per month. Those who cannot afford this assign a male member of family to drive its women, which often amounts to a time-consuming burden.

Traffic police could not immediately be reached for comment on Thursday’s arrests.

Two of the other detainees were Duwaisi’s sisters, she said, adding that she met the other three on Facebook and Twitter.

Authorities last month arrested Manal Al-Sharif, who posted a YouTube video of herself driving in the Eastern Province and calling on other women to do the same.

Al-Sharif has been released but faces charges of “besmirching the kingdom’s reputation abroad and stirring up public opinion.”

Another woman, Shaima Osama, was also arrested for driving last month in Jeddah. She too was later released.Thousands of Saudi men and women joined Facebook groups calling for Saudi driving rights to be extended to women.

Women in the country are also required to have written approval from a designated guardian — a father, husband, brother or son — to emigrate, work or travel abroad.

The campaign that Al-Sharif launched is aimed at teaching women to drive and encouraging them to take to the roads from June 17, using foreign-issued licenses.

Libya Rebels Win Aid, West Sees Gadhafi

ABU DHABI/TRIPOLI: Libya’s cash-starved rebels on Thursday won more than $1.1 billion of aid at a conference of Western and Arab powers that focused on the end-game for Muammar Gadhafi and the country’s civil war.

US Secretary of State Hillary Clinton stepped up pressure on the Libyan leader saying she was aware of talks between people close to Gadhafi that had raised the “potential” for a transition of power.

Australian Foreign Minister Kevin Rudd told the conference Gadhafi’s end “may come sooner than many of you in this room may think.”

NATO warplanes relentlessly bombed Tripoli as the rebels said they hoped to restart oil production, stopping short of giving a date.

At the United Nations, the prosecutor of the International Criminal Court (ICC) said its investigators had found evidence linking Gadhafi to a policy of raping opponents.

A possible war crimes prosecution could be an incentive for Gadhafi to cling to power, but Senegalese President Abdoulaye Wade offered to help ease his former African Union ally’s exit from power and appealed to him to step down.

“It is in your own interest and the interest of all the Libyan people that you leave power in Libya and never dream of coming back to power,” Wade said during a visit to the rebel-held east Libyan city of Benghazi.“I can be one of those who help you pull out of political life and the sooner you leave the better,” Wade said.

Clinton declined to give details of the discussions over Gadhafi’s future.

“There have been numerous and continuing discussions by people close to Gadhafi and we are aware that those discussions include among other matters the potential for a transition,” she told a news conference in Abu Dhabi.

A bipartisan group in the US Congress urged President Barack Obama to use frozen Libyan government assets to pay for humanitarian aid for Libyan people caught up in the civil war.

NATO air strikes resumed in Tripoli on Wednesday night after a lull following the heaviest day of bombings since March, with new blasts shaking the city on Thursday morning and afternoon.

Rebel Oil and Finance Minister Ali Tarhouni said the Benghazi-based leadership hoped to restart production of up to 100,000 barrels a day “soon,” without specifying a timeframe, and called for more aid, immediately.

“It is a failure if there is no clear financial commitment to it,” he told reporters. “Our people are dying ... So my message to our friends is that I hope they walk the walk.”

Italian Foreign Minister Franco Frattini told Reuters Italy would give the rebels up to 400 million euros ($586.1 million) of cash and fuel aid backed by frozen Libyan assets. Kuwait said it would immediately transfer $180 million to the rebels.France pledged 290 million euros to the rebels in “preferential loans” and Turkish Foreign Minister Ahmet Davutoglu said Turkey had set up a $100 fund.

That pledge of assistance came at a meeting of the so-called Libya contact group, including the United States, France and Britain, as well as Arab allies Qatar, Kuwait and Jordan, which is pressing the rebels to give a detailed plan on how they would run the country if Gadhafi stood down or was toppled.

“The international community is beginning to talk about what could constitute end-game to this,” one senior US official told reporters aboard US Secretary of State Hillary

Clinton’s plane which landed in Abu Dhabi on Wednesday night.That official listed scenarios including a cease-fire, which Tripoli has demanded include NATO and leave Gadaffi’s fate open.

The rebel Transitional National Council (TNC) and its Western allies have rejected Libyan government cease-fire offers that do not include Gadhafi stepping down first. 'Pressure will increase'US officials on Wednesday announced delivery of the TNC’s first US oil sale, which they hope will get money flowing.

US oil refiner Tesoro said in May it had brought 1.2 million barrels, which US officials said was due to arrive in Hawaii on Wednesday on a tanker chartered by Swiss trader Vitol.

One of the highest-ranking defectors, ex-Foreign Minister Abdurrahman Mohamed Shalgham, said the rebels needed $3 billion to cover salaries and food costs for the next four months. Libyan assets in Italy could contribute to that sum, he said.NATO defense ministers met in Brussels on Wednesday.

US Defense Secretary Robert Gates said on Thursday that European countries flying the bulk of the air strikes against Libya are stretched thin and will find the NATO-led mission more painful unless other allies do more Germany, which has stayed out of the NATO air strikes, would consider sending troops to Libya as part of a UN military force, Defense Minister Thomas de Maiziere said in Brussels.

The alliance says the bombing aims to protect civilians from the Libyan military, which crushed popular protests in February.

The Libyan leader says the rebels are Islamist militants and NATO attempting to grab Libya’s oil.At the United Nations, the ICC prosecutor said its investigators have evidence linking Gadhafi to a policy of raping opponents and may bring separate charges on the issue.

Prosecutor Luis Moreno-Ocampo requested arrest warrants on May 16 against Gadhafi, his son Saif Al-Islam and the country’s spy chief on charges of crimes against humanity committed during attempts to crush the country’s rebellion.

At a UN news conference on Wednesday, he said the question until recently had been whether Gadhafi himself ordered the rapes “or is it something that happened in the barracks?”

“But now we are getting some information that Gadhafi himself decided to authorize the rapes, and this is new.”

At the United Nations human rights body, Libya’s envoy rejected a separate UN report accusing its forces of crimes. Rebels in the besieged western city of Misrata said thousands of pro-Gadhafi forces launched a major advance on the city and killed at least 12 people with a barrage of shell fire late on Wednesday, though NATO disputed that account.

“There were some small groups of pro-Gadhafi forces who were trying to advance toward the center of Misrata ... but I think this is an embellishment,” a NATO official said.

On Thursday, a separate rebel spokesman, Suleiman, said by phone the city had been bombarded from east, south, and west.

Gadhafi troops and the rebels have been deadlocked for weeks between the eastern towns of Ajdabiyah and the Gadhafi-held oil town of Brega. Rebels also control the western city of Misrata and the range of western mountains near the border with Tunisia.

Yemeni Warplanes Strike Militants in Seized Town

SANAA, Yemen -- Government warplanes and artillery struck Islamic militants who seized a town in southern Yemen, where extremists suspected of links to Al Qaeda have

begun operating openly, training with weapons and controlling roads, emboldened by the country's political turmoil.

The U.S. fears that the impoverished country's power vacuum will give even freer rein to Al Qaeda's branch in Yemen -- already the terror network's most active franchise.

Early on in Yemen's upheaval, militants in March seized the small farming town of Jaar and surrounding areas. On May 27, thousands of militants took control of the nearby city of Zinjibar, capital of southern Abyan province on the Arabian Sea coast, taking advantage of a breakdown of authority resulting from the government's battle with armed tribesmen seeking to topple President Ali Abdullah Saleh, the country's autocratic leader of more than three decades.

Yemen's crisis has deepened further since Saleh was critically wounded in a June 3 attack on his compound and flown to neighboring Saudi Arabia for urgent medical treatment. U.S. officials say the 69-year-old Saleh suffered burns over 40 percent of his body and has bleeding inside his skull.

Yemeni troops have struggled to retake the areas in the south. On Friday morning, warplanes hit militant positions north of Jaar, witnesses and security officials said.

They said there were casualties but the number was not known. The night before, troops shelled other militant positions near the town with artillery, killing at least six militants, according to medical officials. The medical and security officials spoke on condition of anonymity because they were not authorized to talk to the press.

On Thursday, government troops advancing toward Zinjibar killed 12 militants outside the city, the Defense Ministry said.

The government says the militants are suspected of links to Al Qaeda, though their identity is unclear. Yemen is home to thousands of Islamic militants, many of them veterans of "jihads" in Afghanistan,

Iraq and elsewhere, others homegrown extremists. Many have past links to Al Qaeda, though most are believed to operate independently. Al Qaeda's branch in the country is believed to number several hundred fighters.

The developments have fueled fears of growing instability in a nation that has been a launching pad for repeated attacks against the United States.

The Yemen-based Al Qaeda in the Arabian Peninsula has been linked to several attempted attacks on U.S. targets, including the foiled Christmas Day 2009 bombing of an airliner over Detroit and explosives-laden parcels intercepted aboard cargo flights last year.

Yemen is also home to radical U.S.-born Muslim cleric Anwar al-Awlaki, whom Washington has put on a kill-or-capture list and accused of inspiring attacks on the U.S., including the 2009 shooting at Fort Hood, Texas, that killed 13 people.

Saleh, who has clung to power in the face of massive street protests since February, had in recent weeks deployed his best armed and trained military units to fight tribesmen in the capital, Sanaa, who have joined in demands for an end to his regime.

While Saleh's departure for Saudi Arabia has led to a lull in fighting in the capital, it remains fraught with tension as troops led by Saleh's son and close relatives square off against the heavily armed tribesmen.

In Abu Dhabi, U.S. Secretary of State Hillary Rodham Clinton called Thursday on all sides to honor a cease-fire. She said Washington was pushing for an "immediate, orderly and peaceful transition" in Yemen.The political impasse and commitment of elite forces to the fight in Sanaa has left Al Qaeda free to try to entrench its presence in a country that appears inching toward collapse. Emboldened, the militants have made inroads deep in the Yemeni hinterland and on its rugged mountain ranges.

In Abyan, residents said suspected Al Qaeda militants were openly training

in camps and using live ammunition for target practice. They were also carrying out identity checks on travelers on roads leading to neighboring provinces.

"They have a great deal of influence and they use modern vehicles for transport as well as satellite telephones," said Abdullah al-Amari, an Abyan-based rights activist.

Residents of the southern province of Shabwa said suspected Al Qaeda militants and sympathizers had set up checkpoints on the road to the nearby province of Hadramawt. They also controlled the towns of Rawdah and Houtah, where they freely roamed the streets.

Shabwa-based army Lt. Col. Hassan Radwan said his unit knew the whereabouts of Al Qaeda fighters in the province as well as their training camps. "But when we tell our commanders, they tell us that they are just local tribesmen," he said.

At Hadramawt, a southern province on the Arabian Sea coast, activist Nasser Baqezqouz said the militants were so much at ease in the area that "they play dominoes in cafes without any fear."

Saleh's regime has long taken an ambivalent approach toward militants, making him a less-than-reliable partner in the U.S. fight against Al Qaeda.

There is a blurred line between Yemen's large and diverse community of militants and Al Qaeda, which is thought to have no more than 300 hard-core members in Yemen. The militants have varying levels of links to the terror network.

Saleh has allied with many of these groups to promote his own interests against political rivals that include moderate Islamists, leftist parties and secular-minded intellectuals. He has sought the militants' help to "Islamize" the south, where secular traditions endure two decades after it was united with the conservative north.

The upheaval of the past months has left Saleh too preoccupied to focus on

the fight against Al Qaeda, and the United States has stepped up its covert operations in Yemen.American officials said Thursday that a U.S. airstrike on June 3 killed a midlevel Al Qaeda operative named Abu Ali al-Harithia in southern Yemen.

A drone strike by U.S. special operations forces on May 5 targeted al-Awlaki, but a malfunction caused rockets to miss him by a matter of minutes, two American officials told The Associated Press. The officials spoke on condition of anonymity to discuss intelligence matters.

The recent U.S. operations in Yemen come after a nearly yearlong pause in American airstrikes, which were halted amid concerns that poor intelligence had led to bungled missions and civilian deaths that were undercutting the goals of the secret campaign.

Iran Busted for Transferring Weapons to Terrorists in the Mideast

Iran has been caught ten different times in recent years transferring weapons to terrorists in the Middle East, according to the Jerusalem Post.

The Post obtained a report that was submitted to the United Nations Security Council showing cases of arms smuggling by Iran.

The most recent incident came in April when British forces in Afghanistan found a weapons shipment of advanced Iranian-made anti-ship missiles and rockets for the Taliban.

The report shows how the Israeli Navy busted a cargo ship carrying arms for Hamas and how Turkish authorities stopped a cargo plane bound for Syria containing dozens of AK-47 assault rifles and nearly 2,000 mortar shells, according to the website.

The report states that Iran and North Korea exchanged ballistic technology information and that the financial sanctions on Tehran were having an impact. But despite the financial

sanctions, Iran is still able to fund its nuclear program.

"These measures are expensive and time-consuming to set up and administer. They include arrangements to enable sanctioned Iranian banks to maintain access to the international financial sector through normal business conducted by non-sanctioned Iranian banks.

Nevertheless, despite financial restrictions, Iran appears able to continue to pay for procurement from abroad for its prohibited nuclear and ballistic missile programs," the report said, according to the Post.

Iran also test fired two of its most advanced long-range missiles in February. The tests were not reported.

Dozens Killed During Syrian Protests

BEIRUT -- Syrian forces shelled a town in the country's restive north and opened fire on scattered protests nationwide, killing at least 32 people on Friday, activists said. Hundreds of Syrians streamed across the border into Turkey, trying to escape the violence.

A Syrian opposition figure told The Associated Press by telephone that thousands of protesters overwhelmed security officers and torched the courthouse and police station in the northern town of Maaret al-Numan, and the army responded with tank shells. The man spoke on condition of anonymity because of the sensitivity of the matter.

Syria's state-run television appeared to confirm at least part of the report, saying gunmen opened fire on police stations in Maaret al-Numan, causing casualties among security officials.

The Local Coordination Committees, a group that documents anti-government protests in Syria, said at least 32 people died in protests and army operations, half of them in the northwestern province of Idlib. The group said many of the casualties were in Maaret al-Numan.

Twenty-five miles to the west in the same province, Syrian troops backed by dozens of tanks massed outside the virtually deserted town of Jisr al-Shughour and shelled nearby villages. Late Friday, Syrian television said troops reached the entrances of the town and detained members of "armed groups."

According to activists, many of the troops belong to the army's elite 4th Division, which is commanded by Assad's younger brother, Maher. The use of the loyalist forces could reflect the regime's concern about whether regular military units would remain loyal if called upon to crush the uprising in the north.

Other protests in Syria occurred in neighborhoods in the capital, Damascus, and the major city of Aleppo, which are vital to Assad's authoritarian regime. But the demonstrations in those cities have been relatively limited in scope compared to other restive areas.

Syrians who escaped into Turkey depicted a week of revolt and mayhem in Jisr al-Shughour, saying police turned their guns on each other and soldiers shed their uniforms rather than fire on protesters. Syrian television said the operation aimed to restore security in the town, where authorities say 120 officers and security personnel were killed by gunmen last week.

Nearly 4,000 Syrians had crossed into Turkey by Friday, nearly all of them in the past two days, according to Turkish media.

A Syrian refugee at a camp in Turkey accused Syrian forces of attacking civilians.

"Bashar Assad is killing his own people in order to stay in power," Abdulkerim Haji Yousef told AP Television News, standing behind a fence at one of three camps set up for Syrians.

Turkish Prime Minister Recep Tayyip Erdogan, who has used his close ties to Assad in an attempt to press the Syrian leader to make concessions to the protesters, described the crackdown as "savagery."

His government has said it will not shut its border to Syrians fleeing violence, and the Turkish military was increasing security along the border to better manage the refugee influx.

"Unfortunately, it is clear that things are not going in the right direction," Turkey's Anatolia news agency cited Turkish President Abdullah Gul as saying. "We are following things with sadness."

Syria's government has a history of violent retaliation against dissent, including a three-week bombing campaign against the city of Hama that crushed an uprising there in 1982. Jisr al-Shughour itself came under government shelling in 1980, with a reported 70 people killed.

Tanks were on the outer edges of Jisr al-Shughour on Friday, preparing to enter, an AP reporter accompanying Syrian troops on a government-organized trip said. He said the army announced the start of operations at around 5 a.m. Friday. Witnesses contacted by telephone said most residents had abandoned the town of up to 45,000.

Citing contacts inside Syria, Rami Abdul-Rahman, the London-based head of the Syrian Observatory for Human Rights, said more than 10,000 soldiers were involved.

Syria sharply restricts local media and has expelled foreign reporters, making it virtually impossible to independently verify reports about the uprising. The invitation to an AP reporter to accompany troops to Jisr al-Shughour appeared to reflect a Syrian government effort to counter criticism and prove the existence of armed gangs.

"Now we feel safe," said Walida Sheikho, a 50-year-old woman in the village of Foro, near Jisr al-Shughour.

She and other residents offered food, water and juice to the Syrian troops and said they had appealed for help from the army.

Jisr al-Shughour is a predominantly Sunni town with some Alawite and Christian villages nearby. Most

Syrians are Sunni Muslim, but Assad and the ruling elite belong to the minority Alawite sect, an offshoot of Shiite Islam.

In Sirmaniyeh, a nearby village, journalists with the Syrian military saw a parked army bus, its front windshield smashed by gunfire. The army said the bus was ambushed early Friday, and that driver escaped unhurt after a bullet struck his protective vest.

Journalists were also shown eight grenades on a roadside in Ziara, another village in the area.

State television said armed groups torched crops and wheat fields around Jisr al-Shughour as the army approached.

A man in the town blamed security forces for the crop-burning. He said the few remaining residents were collecting tires to burn in an attempt to try to block the army advance.

Speaking by phone, he told an AP reporter in Beirut that about 40 tanks rolled into a village five miles (12 kilometers) from Jisr al-Shughour. He and other activists reported hearing bursts of machine gun fire.

Human rights groups say the crackdown has killed more than 1,300 people, most of them unarmed civilians. The government says a total of 500 security forces have also been killed.

In Geneva, the International Committee of the Red Cross appealed to Syria to grant access to the wounded and people held after clashes with security forces.

Jakob Kellenberger, the ICRC president, said the group hasn't been allowed "meaningful access."

Activists said demonstrators gathered after Friday prayers across Syria, including in northern Aleppo, the central cities of Homs and Hama, Bukamal in the east, and suburbs of Damascus.

Activists said security forces opened fire on protesters near the Sheikh Jaber mosque in the Damascus

suburb of Qaboun, killing three people and wounding several others. One activist, who spoke on condition of anonymity for fear of reprisals, said there were snipers on rooftops and security checkpoints outside local mosques.

Around 200 people, mostly women and children, staged an anti-Assad protest at the camp in Altinozu, Turkey, one of three set up by the Turkish government.

Interviewed on Turkey's ATV television late Thursday, Erdogan, the Turkish prime minister, said some images coming out of Syria were "unpalatable" and suggested Ankara could support a U.N. Security Council decision against Syria.

He criticized Assad's brother, Maher, who is believed to command some troops in the Jisr al-Shughour operation, and is also in charge of the elite Republican Guard, whose job is to protect the government.

"I say this clearly and openly, from a humanitarian point of view, his brother is not behaving in a humane manner. And he is chasing after savagery," Erdogan said.

Saudi Arabia Defies OPEC and Raises Oil Output

In the wake of an unruly OPEC meeting, Saudi Arabia has decided to go it alone and raise production substantially in the coming weeks to meet rising global demand.

The Saudi newspaper Al-Hayat reported on Friday that oil officials there had decided to increase production to 10 million barrels a day in July, from 9.3 million barrels, with most of the additional output going to China and other growing Asian economies.

Saudi oil officials did not comment on the report, but the fact that they did not deny an article that appeared in the tightly controlled Saudi press was taken by analysts as confirmation.

The price of a barrel of light sweet crude dropped by nearly $2.50 to

below $99.43 a barrel in Friday trading, returning to the level that existed before the OPEC meeting in Vienna this week that ended in disarray, with delegates refusing to raise official production levels.

The Saudi move, which was not unexpected, shows that Saudi Arabia will try to counteract any shortages in the market arising from the turmoil sweeping through North Africa and Middle East.

The fighting in Libya has taken 1.3 million barrels off the world market, and the turmoil in Yemen and Syria has subtracted an additional 300,000 barrels.

“The Saudis are showing they can take unilateral action,” said Andrew Lipow, a former Amoco trader who is president of his own consulting firm. “It will show the markets that the Saudis are serious about tempering further increases in price.”

Saudi Arabia is by far the largest producer and exporter in the Organization of the Petroleum Exporting Countries, and is the only member that has considerable spare production capacity. That normally gives the country predominant power in OPEC.

But this year, tensions are running high between Saudi Arabia and Iran as they compete to influence political tides convulsing the region, particularly in Bahrain, where more than 1,000 Saudi troops are bolstering a Sunni monarchy against mostly Shiite protesters supported at least verbally by Iran.

Iran, which holds the revolving OPEC presidency this year, blocked Saudi efforts at the group’s meeting in Vienna to raise official production quotas. Since many countries including Iran already are exceeding the quotas, the failure to increase them was seen as largely a symbolic slap at Saudi Arabia.

Middle East and oil analysts viewed the Saudi decision Friday as a counterpunch directed at Iran, one that would ultimately show that Saudi Arabia remained the most powerful

OPEC member whether it acted inside or outside the cartel.

“Saudi Arabia is meeting an Iranian challenge,” according to an article published online by the Dubai-based, Saudi-owned Al Arabiya news organization. “The kingdom signaled its intention to confront Iran and meet potential shortages in supply.”

But there is only so much Saudi Arabia can do to satisfy a tightening world market. The country has an estimated spare production capacity of 2.5 million to 3 million barrels a day, a thin cushion especially if violence spreads in the Middle East and with oil consumption growing through much of the developing world.

China alone imported 876,000 more barrels a day this May than in the same month last year, according to Barclays Capital.

In its monthly report, OPEC estimated on Friday that global demand would rise by 2.5 million barrels a day in the second half of the year. With demand growing and production rising by a mere 200,000 barrels a day among non-OPEC producers, the report predicted there would be “much higher demand for OPEC crude, reaching a level higher than current OPEC production and implying a draw in inventories.”

OPEC members are currently producing 28.8 million barrels a day, about 1 million barrels a day below what world markets will require in the second half of the year, according to Jeff Dietert, an oil analyst at Simmons & Company International, an investment bank.

“This incremental supply will help keep oil prices from rising more sharply,” Mr. Dietert said of the Saudi move, but he added that prices would probably still go up.

Karzai Urges Pakistan to Help End Taliban Insurgency

Afghan President Hamid Karzai repeated his call for Pakistan on Friday to help end a 10-year Taliban insurgency, as their mutual ally the

United States tries to build on battlefield gains to force a political settlement.

Pakistan is seen as a critical regional player with the clout to help all parties in the conflict reach a settlement.

"The brotherly role of Pakistan ... together with us in defeating extremism and terrorism and working with us to bring stability in both countries would go a long way," Karzai told reporters after meeting with President Asif Ali Zardari.

Ties between Pakistan and Afghanistan have been hampered by mistrust. Both Afghanistan and the United States say Pakistan is not doing enough to prevent militants from crossing the border to attack American-led NATO troops and Afghan security forces.

Pakistan says it is already stretched fighting its own home-grown Taliban militants.

Analysts say it is reluctant because it sees some pro-Taliban militant groups like the Haqqani network as a counterweight to growing Indian influence in Afghanistan.

But Islamabad may be more inclined to act after the United States, which provides billions of dollars of aid, discovered al Qaeda leader Osama bin Laden living in Pakistan. U.S. special forces killed him in a town not far from Islamabad on May 2.

Pakistan, which backed the Taliban government that ruled Afghanistan during the late 1990s, will be crucial to any attempts to stabilize its western neighbor.

Its intelligence services are still believed to have close links with many of the insurgent groups they funded and supported during the war against the Soviet Union and beyond, including the Taliban leadership which is based around the Pakistani city of Quetta.

Many lower level insurgents also find safe haven in Pakistan's lawless tribal regions.

Pakistan has often been accused of playing a "double game," promising the United States it will go after militants while still supporting some of them, an allegation it denies.

Nevertheless it is seen as an important ally to the United States and other NATO members as they seek to bring the Taliban to the negotiating table.

"As far as Pakistan is concerned, we categorically said that Pakistan wants a peaceful, stable Afghanistan and we are ready to facilitate any Afghan-led, Afghan-owned process of reconciliation and peace," said Foreign Ministry spokeswoman Tehmina Janjua.

Pakistani and Afghan military and intelligence chiefs and other officials, part of a joint commission on reconciliation and peace, are due to hold their first formal talks as part of Karzai's visit.

This summer foreign forces will hand security control in parts of Afghanistan to the national police and army, launching a nearly four-year long process that Western nations and Karzai hope will ensure the departure of all international combat troops by the end of 2014.

U.S. Defense Secretary Robert Gates said this month that there could be political talks with the Afghan Taliban by the end of this year if NATO made more military advances and applied pressure on the insurgents.

He has also stressed there would be no hasty U.S. troop withdrawal from Afghanistan and Washington expected its allies to stay the course as well.

Aside from efforts to try to get the Taliban to lay down their arms, Karzai and Pakistani leaders are likely to discuss how bin Laden's death could change the dynamics of a region where he has inspired militants for years.

Iraq 'to Request' US Troops to Stay

Iraq will ask the US to keep its troops in the country beyond the 2011 withdrawal deadline set by US President Barack Obama, Leon Panetta, the White House's pick to lead the Pentagon, said.

"It's clear to me that Iraq is considering the possibility of making a request for some kind of (troop) presence to remain there," Panetta said, adding that he had "every confidence" the request would be "forthcoming at some point."

The outgoing CIA chief told the Senate Armed Services Committee on Thursday that the US should agree once the request is made.

"It really is dependent on the prime minister and on the government of Iraq to present to us what is it that they need, and over what period of time, in order to make sure that the gains that we've made in Iraq are sustained." Panetta told the committee.

Outgoing US Defense Secretary Robert Gates has publicly suggested that Iran is another reason to keep US forces in Iraq.

Washington accuses Iran of supporting Shia groups, a charge Tehran denies, and Iraqi Sunnis view Iran's intentions in Iraq with enormous suspicion.Gates said last month that a continued US military presence in Iraq would be "reassuring" to Gulf states.

Iraqi Prime Minister Nuri al-Maliki's coalition government is debating whether to ask Washington to keep some of the 47,000 US troops in Iraq, if only in a training and advisory role.

Maliki has called for a "mutual and unified national stand" on the issue by August 1 and has criticized other groups in the coalition for either not defining their position or using the issue to attack him and other groups.US and Iraqi military commanders are concerned Iraq's armed forces may not be fully ready to defend the country alone, with Washington pointing to gaps in Iraqi air defense,

intelligence fusion, logistics and more.