MercoPress. South Atlantic News Agency

Opec summit debate a limited production increase in Vienna

World markets await Opec debate about production increase

World oil prices threatened to hit a new high today ahead of a crunch meeting between the Opec oil-producing states where they will decide on whether to increase production.

Amid mounting speculation that Opec will push through a limited increase in output, light sweet crude oil futures traded in New York were up by 41 cents at $77.90 a barrel. Brent North Sea crude was priced at $75.76 a barrel. Both futures contracts are for oil that would be delivered in a month's time. Opec - the Organisation of the Petroleum Exporting Countries - is preparing to make its final decision in Vienna about oil production levels. Opec has come under mounting pressure, particularly from America, to boost oil output to stem persistently high oil prices. Of the 12 members of the oil cartel meeting yesterday, Saudi Arabia, the world's largest oil producer, is thought to embrace the idea of a gentle production increase. Venezuela and Iran, traditionally hawkish on the oil price, have been resisting. Gholam Hossein Nozari, Iran's acting oil minister, said yesterday: "There is enough crude in the market." Analysts were speculating that Opec would opt for a small increase in daily production - of about 500,000 barrels - that would serve to realign its output levels but which would also help to put a lid on prices. Opec states are currently producing more than their official output target of 25.8 million barrels per day. The International Energy Agency, based in Paris, yesterday urged Opec to raise crude output, arguing that, as winter approaches, worldwide demand is likely to outstrip supply. If OPEC opts not to boost its output targets Tuesday, analysts said an increase could come before the next OPEC meeting Dec. 5 in the United Arab Emirates. The 12 OPEC members are Algeria, Angola, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela