U.S. President George Bush flew to Saudi Arabia to make a renewed appeal for the kingdom to help cut record-high oil prices. Saudi Arabia and the Organization of Petroleum Exporting Countries have been asked repeatedly to increase their production of oil to ease supply constraints in an attempt to lower oil prices.

In January, when Saudi Arabia was first approached, the oil minister said that oil production was at normal levels and production would be increased only if the market justified it, the Guardian reported.

But now the United States is threatening to block $1.4 billion in arms sales to Saudi Arabia if it does not increase its oil production by 1 million barrels per day.

The price of crude oil has traded at new highs since the beginning of the year, and analysts are predicting it will eventually reach $200 a barrel.

High demand from developing countries and political tensions have tightened oil supplies.

The United States has agreed to help protect Saudi Arabia's oil, which accounts for more than one-tenth of global output. In addition, the two countries are expected to sign a memorandum of understanding to cooperate in a peaceful nuclear program.

Venezuela threatens a spike in oil prices if it's attacked

As oil prices climb, international cooperation is focusing on securing supplies and stabilizing prices. Venezuela, along with Iran and Nigeria, is at the forefront of geopolitical tensions that are at least partially behind the price increases.

Now Venezuelan President Hugo Chavez has said he wants to rebuild the country's relationship with the United States, Xinhua reported.

Chavez denied that Venezuela was a threat to the United States and said that his country's daily oil export to the United States has reached 1.5 million barrels and annual commercial exchange has topped $50 billion.

He also said, however, that that crude oil would rise to "$400 or $500 a barrel" if the United States attacked his country, the largest oil exporter in the Americas.

"Now we're at $120 and it's continuing up," Chavez said. "If there's a war against Venezuela, with the oil in this soil, it won't depart from the Venezuelans, it won't go to anyone."

This was in reaction to the pending reactivation of the U.S. Fourth Fleet in the Caribbean at the beginning of July and a possible U.S. base on the Guajira Peninsula, which Venezuela shares with Colombia. Chavez said that both are threats to Venezuela.

Colombia has said that it has no plan to give the United States a base, but Chavez issued his warning nonetheless.

Indian oil workers in Sudan kidnapped by locals

In the midst of increasing geopolitical tensions, four Indian nationals were kidnapped by a group demanding better infrastructure for the oilfield area in Sudan.

P.K. Abhilash, Mohd Naseeb Shaikh, Biplab Biswas and Surjeet Singh were on their way back from an assignment to their base camp near Heglig in southern Sudan, where Indian company ONGC Videsh Ltd. has its oilfields. They are not, however, employees of OVL, said India's Ambassador to Sudan Deepak Vohra.

The four men work for a company owned by India-based Petro Energy Contracting Services. The company has 75 Indian and 50 Sudanese employees and provides construction services to the oil sector in Sudan, the Hindustan Times reported.

Tensions in Asia, the Middle East and Latin America have been pointed to as a major reason for the recent record-high oil prices.

Vohra said the abductees had been identified, and he was hopeful they would be released soon.

"We know where the victims are," Vohra said. "Negotiations for their release are ongoing. I expect good results soon. They are unharmed and being well treated."

The abductors, who allegedly did not know their victims were Indian, have taken other hostages before demanding better development for their area that produces oil.

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Closing oil prices, May 16, 3 p.m. London

Brent crude oil: $124.13

West Texas Intermediate crude oil: $127.09

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(e-mail: energy@upi.com)