UPDATE 1-U.S. senators pressure Saudis to boost oil output

(Adds defense contractors, weapons, paragraphs 11-12)

By Richard Cowan

WASHINGTON, May 13 (Reuters) - Democrats trying to pressure Saudi Arabia to boost oil output introduced legislation in the Senate on Tuesday that would stop a $1.4 billion U.S. arms sale to the kingdom.

"We are saying that we need real relief and we need it quickly. You (Saudi Arabia) need our arms, but we need you to cooperate and not strangle American consumers," said Sen. Charles Schumer, a New York Democrat.

The resolution to disapprove the Saudi arms sale the Bush administration outlined in December and January could be voted on in coming days, timed for President George W. Bush's trip to Saudi Arabia this week.

Democratic and Republican lawmakers are also scurrying in this election year to show voters they are trying to do something about rapidly rising gasoline prices.

Earlier on Tuesday, the Senate voted 97-1 to suspend oil deliveries to the U.S. Strategic Petroleum Reserve to put more oil onto the market and slightly lower the price at the pump. The House of Representatives was expected to pass the measure later in the day, despite opposition from Bush.

There was little chance the legislation killing the Saudi arms sale would prevail. If the Senate were to pass it, it still would have to be approved by the House and signed by Bush, who would oppose it.

But Senate Democrats made no secret their real motive was to pressure Saudi Arabia, the world's largest oil producer and most influential member of OPEC, to increase output that has fallen off in recent years.

In 2005, the Saudis produced 9.55 million barrels of oil per day. The kingdom's output fell to 9.15 million barrels a day in 2006 and then dropped to 8.72 million barrels per day last year.

Schumer told reporters that Democrats hoped that with the legislation "hanging over their heads," Saudi Arabia would "do a lot more than they have done before. The bottom line is energy prices are burning a hole in every American's wallet and pocketbook."

Bush last visited Saudi Arabia in January, when he called on OPEC to increase production. His plea was largely ignored and oil prices have since risen more than $30 a barrel to a record of nearly $127.

The four proposed U.S. arms sales to Saudi Arabia include $123 million in Joint Direct Attack Munition bomb kits made by Boeing Co (BA.N) and $631 million in light armored vehicles built by General Dynamics Corp (GD.N).

The Bush administration has also proposed to sell Saudi Arabia $220 million worth of advanced targeting equipment built by Lockheed Martin Corp (LMT.N) for its F-15 fighter jets, and up to $400 million in Boeing communications equipment for its AWACS aircraft.

All the weapons are aimed at helping to balance Iran's growing military clout in the region.

Congress can try to block arms sales until they are actually delivered to a foreign country. (Editing by David Storey and Peter Cooney)