By Tabassum Zakaria
RIYADH (Reuters) - U.S. Vice President Dick Cheney onFriday met Saudi Arabia's King Abdullah for talks that willinclude discussions on cooperation to stabilise the oil market,where prices have reached record highs.
"I'm sure they will talk about the need for a cooperativeway forward to try and stabilise this market, reduce thevolatility in the market, and serve the interests of bothconsumers and producers alike," John Hannah, national securityadviser to Cheney, told reporters.
Oil prices have risen in recent weeks to record highs above$100 a barrel because investors have piled into commodities asthe value of the U.S. dollar has sharply fallen. The price fellbelow $100 on Thursday on fears of a U.S. economic slowdown.
Cheney's trip follows a visit to Saudi Arabia by PresidentGeorge W. Bush, who in January called for crude oil exporters'group OPEC to increase production.
"They are going to build off of the president's discussionshere clearly. They will review those discussions. They willreview a broad agenda of diplomatic and security issues as wellas where we are now in the global energy market," Hannah said.
Cheney will also review his trips in the last few days toIraq and Afghanistan during his talks with Abdullah at theking's farm on the outskirts of Riyadh.
Cheney, who flew into Riyadh from Oman with his wife Lynneand daughter Liz, arrived at the king's farm, where he wasgreeted by Abdullah and Saudi aides carrying incense.
"Mr. Vice President, we've been friends for a very longtime," Abdullah said before awarding Cheney a high Saudi awardwith a green sash and a medal.
BROAD RANGE
While they will cover a broad range of issues, energy willbe a key topic, with high oil prices hurting the U.S. economy.
"They will have ample discussions about both the problemsthat exist in the market, whether they, how they lendthemselves to various kinds of solutions," Hannah said.
A senior administration official, speaking on condition ofanonymity, told reporters that Iran would be high on Cheney'sagenda as well as Syria and Lebanon.
Cheney would encourage the Saudis and others to supportinternational efforts to help Iraq and Afghanistan.
The United States wants Saudi Arabia and other Arab alliesto establish a diplomatic presence in Iraq and helpreconstruction efforts in Afghanistan.
"I imagine he'll be looking to encourage the Saudis as wellas other Arab countries to continue to support theinternational community's efforts to help Iraq and Afghanistanand certainly in both cases to look for places where they canactually increase their support to those governments," theofficial said.
They may also discuss Pakistan post-election, the officialsaid. "The Saudis have long-standing relationships with bothPresident Musharraf as well as with former Prime Minister NawazSharif. So they clearly have some influence in Pakistan."
The United States sees Pakistan as an important ally infighting terrorism.
Cheney and his family will spend the night at the Janadriyafarm and leave Saudi Arabia on Saturday for Israel.
(Reporting by Toby Zakaria; editing by Giles Elgood)
