In Saudi Arabia, Cheney Talks Oil

Vice President Dick Cheney met King Abdullah of Saudi Arabia on Friday for talks expected to include cooperation to stabilize the oil market after prices reached record highs.

“I’m sure they will talk about the need for a cooperative way forward to try and stabilize this market, reduce the volatility in the market, and serve the interests of both consumers and producers alike,” said John Hannah, national security adviser to Cheney.

Oil prices have risen in recent weeks to record highs above $100 a barrel because investors have piled into commodities as the value of the U.S. dollar has sharply fallen. The price fell below $100 on Thursday on fears of a U.S. economic slowdown.

Cheney’s trip follows a visit to Saudi Arabia by President George W. Bush, who in January called for OPEC to increase production.

Saudi Arabia, a U.S. ally, is the world’s top oil exporter and the only OPEC member that can easily add significant amounts of extra oil to the market.

“They are going to build off of the president’s discussions here clearly,” Hannah said. “They will review those discussions. They will review a broad agenda of diplomatic and security issues as well as where we are now in the global energy market.”

Cheney will also review his trips in the last few days to Iraq and Afghanistan during his talks with Abdullah at the king’s farm on the outskirts of Riyadh.

Cheney, who flew into Riyadh from Oman with his wife, Lynne, and daughter Liz, arrived at the king’s farm, where he was greeted by Abdullah and Saudi aides carrying incense.

“Mr. Vice President, we’ve been friends for a very long time,” Abdullah said before awarding Cheney a high Saudi award with a green sash and a medal. While they will cover a broad range of issues, energy will be a key topic because of high oil prices hurting the U.S. economy.

A senior administration official, speaking on condition of anonymity, said: “Clearly there are medium- and longer-term things that people can do to try and increase global capacity. There’s obviously things the United States can do.”

Iran would be high on Cheney’s agenda, as well as Syria and Lebanon. He would also encourage the Saudis and others to support international efforts to help Iraq and Afghanistan.

Originally published by Reuters.

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