UPDATE 1-Obama, Saudi King to discuss oil prices

(Adds more details, background)

WASHINGTON, May 27 (Reuters) - U.S. President Barack Obama and Saudi King Abdullah will likely discuss global oil prices when they meet next week in Riyadh, the White House said on Wednesday.

"I can only imagine that will be a topic -- yes," White House spokesman Robert Gibbs said when asked whether the issue was likely to come up.

Rising crude oil costs are pushing up gasoline prices, on signs that an improving U.S. economy will boost petroleum demand. U.S. crude oil futures settled at a fresh 2009 high of $62.45 a barrel on Tuesday at the New York Mercantile Exchange.

Gibbs was pressed on whether economic growth would be derailed if oil prices were to continue to rise.

"Look, obviously, the president is concerned about anything that raises the cost of living in a fragile economic time," Gibbs said but declined to elaborate.

Obama will visit Riyadh on June 3, an addition to his scheduled trip to Egypt, Germany and France.

(Reporting by Caren Bohan; Editing by Sandra Maler)