U.S. arms sales to OPEC at risk over oil: senators

By Chris Baltimore

WASHINGTON (Reuters) - Democrats in the U.S. Senate stepped up their attacks on OPEC oil producers on Thursday, threatening to block billions of dollars in arms sales to suppliers such as Saudi Arabia if they fail to take action to tame record oil prices.

Democratic senators Charles Schumer of New York, Byron Dorgan of North Dakota and others called on the White House to "jawbone" OPEC members to boost output or risk Congress blocking arms deals with Saudi Arabia, the United Arab Emirates and other OPEC members.

"The Saudis have to understand this is a two-way street," Schumer told reporters. "We provide them weapons, our troops provide them protection, and then they rake us over the coals when it comes to oil."

The Bush administration is in a delicate position on Middle East policy, and record-high oil prices near $120 a barrel are just one of many thorny regional issues.

President George W. Bush has repeatedly nudged OPEC members like Saudi Arabia to boost output, but is also trying to use U.S. arms sales to offset Iran's influence in the Middle East.

The lawmakers' plan is "the wrong approach when it comes to our security and our energy," White House spokesman Scott Stanzel said, criticizing Democrats for blocking plans to drill for oil in an Alaska wildlife refuge.

"Arms sales to our allies are made because they are in the national security interests of our country, not because they are a bargaining chit," Stanzel said.

The Bush administration has notified Congress it plans to sell Saudi Arabia bomb-guidance kits worth about $120 million.