OPEC may increase crude oil output to plug any supply deficit caused by a possible war against Iraq, Algerian Energy and Mines Minister Mr Chakib Khelil said yesterday.
"OPEC had said several times that the organisation is ready to satisfy any need on the market and deal with any repercussion on the market," said Mr Khelil.
He was replying to a reporter's question on whether the cartel plans to increase output in the case of a US offensive against Iraq.
Mr Khelil was speaking at a news conference ahead of an OPEC meeting on Thursday in Japan.
However, with oil prices already around $30 (€30.66) a barrel, few observers expect the oil cartel to to raise output limits at Thursday's meeting to stop a damaging crude price spike.
Consumer nations want to prevent a rise in energy costs hurting fragile economic recovery but most in OPEC are loath to put at risk a successful three-year strategy of supporting high prices with stiff production restraints.
Economists say the cost of higher oil prices - up nearly 50 per cent since January to $29.82 (€30.47) a barrel for US crude on Friday - hits consumers and companies alike.
Importing nations can only hope that Saudi Arabia decides to use its unrivalled weight in OPEC to head off the threat of higher prices over the northern hemisphere winter.
Powerful enough to bulldoze through a change in policy against majority opinion, Saudi has yet to reveal its hand. - (Reuters)
