Blair told reporters during the visit that efforts must be made to reduce oil prices and the world's biggest exporter Saudi Arabia is doing what it could in this respect.

Oil prices are likely to be on the agenda of a summit meeting of the Group of Eight in Scotland next week, with Britain taking over the rotating presidency.

Blair said the Saudis are increasing production and they will work together in an effort to reduce prices to a more acceptable level.

Blair also held talks with Crown Prince Abdullah bin Abdul Aziz on recent developments in regional affairs, including Iraq and the Palestinians.